Federal law enforcement arrested Michael Young and Lakiya Malone on corruption charges related to misappropriation of millions in taxpayer dollars from California-based homelessness non-profits. Young is accused of embezzling over $7.5 million for personal ventures like a high-end restaurant, while Malone faces charges of taking more than $180,000 in bribes and kickbacks. The arrests highlight the Trump administration's focus on combating perceived fraud among blue states, particularly in California’s homelessness initiatives.
Written by the local model on 2026-09-17,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
FBI agents arrested Michael Young, founder of the Culver City-based non-profit Home At Last, and Lakiya Malone, an employee of Los Angeles-based Special Service for Groups (SSG), on corruption charges related to misappropriation of millions in taxpayer funds meant for homeless services. Young is charged with embezzling over $7.5 million from contracts with Los Angeles County, which he allegedly used for personal expenses like opening a high-end restaurant and nightclub. Malone faces charges of accepting more than $180,000 in bribes and kickbacks from Alexander Soofer, the executive director of homeless services nonprofit Abundant Blessings, who has agreed to plead guilty separately in a $23 million fraud scheme. The arrests are part of an operation by the Homeless Fraud and Corruption Task Force aimed at rooting out corruption within the Los Angeles Homeless Services Authority (LAHSA), which coordinates housing and social services for homeless individuals in Los Angeles County.
Written for “Homelessness Charity Corruption” on 2026-09-17,
grounded in this article and the 2 other(s) covering the same event.
Why this leaning score
The article's own words the score was based on. Each is quoted
verbatim and was checked against the article text before being
stored, so you can find it in the original.
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The arrests come amid growing Trump administration-backed efforts to root out “fraud” in blue states, such as California.
right associates rooting out fraud with the Trump administration
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Donald Trump named JD Vance his “fraud czar”, with a focus on investigating “those blue states where crooked Democrat politicians … have had a ‘free for all’ in the unprecedented theft of taxpayer money”.
right frames Democrats as corrupt and stealing taxpayer money
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This summer, the Trump administration suspended federal funding to Los Angeles’s homelessness agency, Lahsa, pending an investigation citing allegations of fraud.
right frames suspending funding as a response to alleged fraud
Leaning score +0.45 for article 14662 (high confidence, 3 verified quotes) · logged 2026-09-17
Federal law enforcement officers have arrested two employees of California-based homelessness non-profits on corruption charges, alleging that they misappropriated millions in taxpayer dollars.
asserted
they → arrest → dollars
The US justice department has arrested Michael Young, a founder of the Culver City-based nonprofit Home At Last, and Lakiya Malone, an employee of the Los Angeles-based Special Service for Groups.
asserted
department → arrest → Groups
The two are expected to appear in court on Wednesday.
asserted
two → expect → Wednesday
Young is charged with wire fraud in a scheme to embezzle more than $7.5m from contracts with Los Angeles county and other publicly funded agencies, which he used to open a high-end restaurant, nightclub and bingo hall.
asserted
he → charge → restaurant
Malone is charged with taking more than $180,000 in bribes and kickbacks from the director of another homelessness non-profit, Alexander Soofer, who has agreed to plead guilty in a separate case.
asserted
who → charge → case
The justice department is also seeking to arrest Donye Mitchell, the CEO of the Los Angeles-based nonprofit The Big Blue Umbrella.
asserted
department → seek → nonprofit
Mitchell is charged with wire fraud in a case that alleges he fraudulently obtained $1.2m in public grant funding, which he allegedly used for personal expenses, including his own bail bonds, credit card debt and PlayStation charges
“My message to every fraudster who steals from the vulnerable is clear: we will track you down, bring charges where the evidence leads, and work relentlessly to reclaim every taxpayer dollar you stole,” said assistant attorney general Colin M McDonald of the National Fraud Enforcement Division.
uncertain
McDonald → charge → Division
The investigation was led by the homeless fraud and corruption taskforce, which US attorney Bill Essayli formed last year to “investigate fraud, waste, abuse, and corruption involving funds allocated toward the eradication of homelessness within the seven-county jurisdiction of the central district of California”.
asserted
Essayli → lead → California
The arrests come amid growing Trump administration-backed efforts to root out “fraud” in blue states, such as California.
asserted
arrests → come → California
In April, Donald Trump named JD Vance his “fraud czar”, with a focus on investigating “those blue states where crooked Democrat politicians … have had a ‘free for all’ in the unprecedented theft of taxpayer money”.
asserted
politicians → name → money
Months prior, he froze federal childcare funding to Minnesota over accusations of such fraud, and halted more than a quarter-billion dollars in Medicaid funds to the state as part of efforts to ensure it was a “good steward of the American people’s tax money”.
asserted
it → freeze → money
This summer, the Trump administration suspended federal funding to Los Angeles’s homelessness agency, Lahsa, pending an investigation citing allegations of fraud.
asserted
administration → suspend → fraud
At the time, about 8% of Lahsa’s budget came from federal funding.
asserted
% → come → funding
And earlier this week, 12 people in southern California were charged with fraudulently collecting $10m in government childcare payments, despite allegedly caring for few or no children.
uncertain
people → charge → children
“If you fail the taxpayer, if you fail our cities, if you fail our shared mission of ending homelessness, there will be consequences and we will cut you off,” housing and urban development secretary Scott Turner said at a press conference.
asserted
Turner → fail → conference
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