Federal Officials Charge 3 in LA Homeless Aid Fraud Over $118 Million
Updated
Updated · Fox News · Sep 16
Federal Officials Charge 3 in LA Homeless Aid Fraud Over $118 Million
3 articles · Updated · Fox News · Sep 16
Summary
Two defendants were arrested Wednesday and a third was sought after federal prosecutors charged three people in Los Angeles homeless-aid fraud cases.
Michael Young, founder of Home At Last, allegedly diverted millions from more than $118 million in public contracts, including over $7.5 million through a sham-vendor scheme.
Prosecutors said Young spent the money on a nightclub, a nearly $50,000 Tahiti trip and a $140,000 vintage Impala restoration instead of housing services.
Lakiya Malone allegedly took more than $180,000 in bribes for priority referrals and fake homeless participants, while fugitive Donye Mitchell is accused of misusing over $1.2 million in grants.
The crackdown widens a federal corruption probe into California homelessness spending after nonprofit executive Alexander Soofer agreed to plead guilty over a separate $23 million scheme.