Federal Prosecutors Charge 3 in LA Homelessness Fraud Cases Tied to $75 Million Provider
Updated
Updated · Fox News · Sep 19
Federal Prosecutors Charge 3 in LA Homelessness Fraud Cases Tied to $75 Million Provider
3 articles · Updated · Fox News · Sep 19
Summary
Three defendants — Michael Young, Lakiya Malone and Donye Mitchell — were charged in separate federal cases alleging Los Angeles homelessness funds were diverted through fake housing referrals, bribes and spending on a nightclub and bingo hall.
More than $75 million went from Los Angeles' homelessness agency to one suspect nonprofit, according to prosecutors, sharpening scrutiny of how federally backed homelessness money is tracked and protected.
Rep. Michael Cloud said the cases expose a system that rewards dollars spent rather than people moved off the streets, arguing current incentives leave room for fraud and dependency.
HUD has already moved to suspend LAHSA over alleged failures in financial management and conflict safeguards, though the agency is challenging that action in court.
Nearly $1 billion has flowed through Los Angeles' Continuum of Care over five years, and HUD's latest $4.04 billion funding round adds anti-fraud measures while steering $1.3 billion toward transitional housing and supportive services.