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Los Angeles nonprofit workers arrested in multi-million dollar homelessness fraud scheme
Federal authorities have arrested several individuals in a major crackdown on corruption within Los Angeles homelessness services. The investigation targets the misappropriation of millions of dollars in taxpayer funds intended for unhoused residents.
Michael Young, founder of the Culver City-based nonprofit Home At Last, is charged with wire fraud for allegedly embezzling more than $7.5 million. Prosecutors claim Young used shell companies and fraudulent billing to divert funds, including over $1 million to open the Six Seven Five Lounge, a nightclub and restaurant in Inglewood.
Lakiya Malone, an employee of Special Service for Groups, was arrested for allegedly accepting over $180,000 in bribes from Alexander Soofer, the former executive director of Abundant Blessings. Malone is accused of providing priority housing referrals for 'ghost' clients who did not actually reside at the sites. Soofer has already agreed to plead guilty to wire fraud and money laundering.
Additionally, Donye Mitchell, CEO of The Big Blue Umbrella, faces wire fraud charges for allegedly misappropriating $1.2 million in public grants for personal expenses. The coordinated raids and arrests were conducted by federal law enforcement as part of an ongoing probe into fraud and waste within the Los Angeles Homeless Services Authority network.
Entities
Abundant Blessings · Alexander Soofer · Donye Mitchell · FBI · Lakiya Malone · Los Angeles Homeless Services Authority · Michael Young · U.S. Department of Housing and Urban Development
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The fraud scheme utilized 'ghost' participants who did not reside at the housing sites to inflate referral numbers. pulptastic.com · mynewsla.com
- [● 3 SOURCES] Lakiya Malone allegedly accepted over $180,000 in bribes and kickbacks from Alexander Soofer. pulptastic.com · ca.news.yahoo.com · mynewsla.com
- [● 2 SOURCES] Donye Mitchell is charged with wire fraud for allegedly obtaining $1.2 million in public grant funding for personal use. ca.news.yahoo.com · time.news
- [● 4 SOURCES] Michael Young is charged with wire fraud for allegedly embezzling more than $7.5 million from public contracts. ca.news.yahoo.com · www.lucianne.com · mynewsla.com · time.news
- [● 3 SOURCES] Alexander Soofer has agreed to plead guilty to wire fraud and money laundering. pulptastic.com · ca.news.yahoo.com · mynewsla.com
- [○ 1 SOURCE] Michael Young allegedly used over $1 million of misappropriated funds to open the Six Seven Five Lounge in Inglewood. mynewsla.com