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2 clusters · 9 sources · 7 days · First seen 7 days ago · Last updated about 23 hours ago

Los Angeles nonprofit financial fraud investigations

Overview

Investigations into the use of public funds in Los Angeles have revealed significant financial irregularities and corruption within various nonprofit sectors. Initial scrutiny focused on the LA Opera, which received millions in government grants, and the Los Angeles Homeless Services Authority (LAHSA). In the latter case, prosecutors alleged that Alex Soofer, former leader of the nonprofit Abundant Blessings, diverted at least $10 million intended for homelessness services to fund personal luxuries. Federal auditors noted that LAHSA delayed notifying federal funders of potential crimes for approximately eight months.

The situation escalated with federal authorities conducting coordinated raids and arrests targeting a broader network of fraud within the LAHSA system. Michael Young, founder of Home At Last, was charged with wire fraud for allegedly embezzling over $7.5 million, including funds used to open a nightclub. Other legal actions included the arrest of Lakiya Malone for allegedly accepting bribes from Soofer to provide priority housing for ‘ghost’ clients, and wire fraud charges against Donye Mitchell, CEO of The Big Blue Umbrella, for the alleged misappropriation of $1.2 million in public grants.

Entities

Los Angeles Homeless Services Authority · Abundant Blessings · FBI · Lakiya Malone · Alexander Soofer

Claims

What the coverage asserts, and how many sources carry each claim.

[● 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] Lakiya Malone allegedly accepted over $180,000 in bribes and kickbacks from Alexander Soofer. pulptastic.com · ca.news.yahoo.com · mynewsla.com
[● 3 SOURCES] Alexander Soofer has agreed to plead guilty to wire fraud and money laundering. 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
[● 2 SOURCES] The fraud scheme utilized 'ghost' participants who did not reside at the housing sites to inflate referral numbers. pulptastic.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

Timeline

about 23 hours ago

[CRIME] 6 sources
Los Angeles nonprofit workers arrested in multi-million dollar homelessness fraud scheme
Federal agents arrested multiple Los Angeles nonprofit workers for allegedly stealing millions in taxpayer funds meant for homeless services to fund luxury lifestyles, nightclubs, and personal expenses.
7 days ago

[POLITICS] 3 sources
Los Angeles nonprofit spending faces scrutiny over public funds
Investigations in Los Angeles reveal misuse of public funds, including high executive pay at LA Opera and alleged fraud involving $10 million in homelessness grants at Abundant Blessings.

Sources

americanfaith.com · ca.sports.yahoo.com · freerepublic.com · lucianne.com · mynewsla.com · operawire.com · pulptastic.com · thecooldown.com · time.news