The U.S. Department of Justice charged three individuals with defrauding federal funds meant for Los Angeles homeless programs, involving misappropriation and bribery totaling millions of dollars. Michael Young, founder of Home At Last, is accused of using $12 million in public funds for personal expenses such as vacations and a nightclub venture. Lakiya Malone, an employee at Special Service for Groups, faces charges related to accepting $180,000 in bribes and kickbacks, while Donye Mitchell remains at large after allegedly misrepresenting his credentials to obtain grant funding which he spent on personal costs including bail expenses. This fraud highlights the poor financial management of LAHSA, leading to federal funding suspension by the Trump administration.
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.
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No political leaning scored for article 14665 · logged 2026-09-17
The U.S. Department of Justice (DOJ) announced Wednesday that it had charged three individuals with defrauding federal funds intended for Los Angeles–area homelessness programs.
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it → announce → programs
Two of the defendants, Michael Young and Lakiya Malone, were arrested by federal agents at their homes Wednesday morning.
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Two → arrest → homes
Both have been charged with wire fraud.
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Both → charge → fraud
A third defendant, Donye Mitchell, remains at large.
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defendant → remain → ?
The DOJ says that the nonprofit received $118 million in public funds through various contracts with the Los Angeles Homeless Services Authority (LAHSA), a city-county body tasked with coordinating and managing a wide range of city, state, and federal homeless grant programs.
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nonprofit → say → programs
Federal prosecutors allege that Young misappropriated $12 million of those funds for his own personal expenses, including vacations and business ventures like a nightclub he founded in Inglewood.
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he → allege → Inglewood
Malone, an employee of the nonprofit Special Service for Groups, is accused of accepting $180,000 in bribes and kickbacks from another nonprofit homeless provider, Alexander Soofer, to place homeless clients in programs administered by his charity, including fictitious "ghost clients" who only existed on paper.
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who → accuse → paper
Soofer was arrested in January on fraud charges related to these schemes and has admitted to misappropriating $10 million in public funds for his own use.
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Soofer → arrest → use
He's expected to plead guilty to felony fraud charges in the coming weeks, according to the DOJ.
uncertain
He → expect → DOJ
Mitchell, who prosecutors said during a press conference this afternoon had not been arrested yet, is accused of misrepresenting his experience as a homeless service provider to obtain public grant funding, which he then spent on personal expenses, including his own bail costs for a domestic violence arrest.
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he → say → arrest
"The scale and brazenness of these fraudsters expose a profound failure by the State of California and Los Angeles County to safeguard public funds," said First Assistant U.S. Attorney Bill Essayli for the Central District of California in a statement.
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Essayli → expose → statement
The charges against Malone, Mitchell, and Young come several months after the Trump administration suspended federal funding to LAHSA, citing the authority's poor financial management and conflicts of interest with vendors.
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administration → come → vendors
In August, LAist published a detailed report on how LAHSA continued to sign contracts with Soofer's charities after internal auditors flagged it as "high-risk."
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auditors → publish → risk
LAist had previously reported that hundreds of apartments rented by the authority to serve as housing for the homeless sat empty.
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hundreds → report → homeless
LAHSA's mismanagement has become a focal point in Los Angeles' mayoral election.
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mismanagement → become → election
Mayor Karen Bass, who appointed herself to the authority's governing commission in 2023, has been criticized for its failures and for her own absence at LAHSA commission meetings.
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who → appoint → meetings
Bass' opponent, Councilmember Nithya Raman, who until recently chaired the committee overseeing the city's homelessness spending, has been criticized by Bass allies for slow-walking efforts to redirect city homeless funds from LAHSA to city-controlled programs.
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who → chair → programs
Los Angeles County has already removed $300 million of its own money from LAHSA to support homeless programs run by its new homelessness department.
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County → remove → department
In July, LAHSA reported that homelessness across all of Los Angeles County had risen 1.2 percent.
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homelessness → report → County
The Aporia
