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DOJ Says Workers at L.A. Homeless Nonprofits Spent Tax Dollars on Vacations, Nightclubs, Bail

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Britschgi, C. (2026, September 16). DOJ Says Workers at L.A. Homeless Nonprofits Spent Tax Dollars on Vacations, Nightclubs, Bail. Reason. https://reason.com/2026/09/16/doj-says-workers-at-l-a-homeless-nonprofits-spent-tax-dollars-on-vacations-nightclubs-bail/

Dated when The Aporia collected the article, usually within hours of publication. Check the original for its exact date and byline.

Reason · collected 2026-09-16 · by Christian Britschgi

Quick Summary

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 AI on 2026-09-17, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

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 2026-11-01, grounded in this article and the 2 other(s) covering the same event.

Story

📰 Homelessness Charity Corruption
Crime & Law · 3 article(s) covering the same event. Compare every outlet's account →

Compared with similar articles

This article reads unscored and hedges 5% of its claims. Each row says how that neighbour differs.
New York Post
⚖️ Leans right Hedges 6 of 24 claims Outlet record 66/100
The Guardian
⚖️ Leans right Hedges 2 of 15 claims Outlet record 66/100
Fox News
Hedges 2 of 19 claims Outlet record 69/100
“While both articles discuss federal charges against individuals for defrauding funds intended for homelessness programs in Los Angeles, Article B focuses on the broader implications and concerns raised by Rep. Michael Cloud rather than reporting on the specific incident described in Article A.”
Fox News
Hedges 4 of 21 claims Outlet record 69/100
“Article A focuses on a specific case in Los Angeles involving three individuals charged with defrauding federal funds intended for homelessness programs, while Article B is broader, mentioning multiple cases nationwide during 'Fraud Week'.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
19
sentences that state something as happening or true
Uncertain
5%
1 of 19 hedged ("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
67/100
Reason's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
3
Crime & Law
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-09-17 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

Reason · 1047 article(s) · 4 correction(s) detected
Running correction rate · 4 correction(s)

Who wrote this

Christian Britschgi
20 article(s) here · 1 carrying a prediction
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2026-10-13 · assertive framing · Code Games 2.0
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Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 20 articles by Christian Britschgi →

Topics

DOJ LAHSA LAist Los Angeles The U.S. Department of Justice

Subjects

LAHSA ORG · 8× DOJ ORG · 3× Los Angeles County GPE · 3× Young PERSON · 3× Bass PERSON · 2× LAist ORG · 2× Malone PERSON · 2× Mitchell PERSON · 2× Soofer PERSON · 2× The U.S. Department of Justice ORG · 1×

Narrative

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.
framing: assertive · carried by 1 article(s) · first seen 2026-09-17
🔮 He's expected to plead guilty to felony fraud charges in the coming weeks, according to the DOJ.

Claims (19 extracted, 1 hedged)

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. asserted
it → announce → programs
Two of the defendants, Michael Young and Lakiya Malone, were arrested by federal agents at their homes Wednesday morning. asserted
Two → arrest → homes
Both have been charged with wire fraud. asserted
Both → charge → fraud
A third defendant, Donye Mitchell, remains at large. asserted
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. asserted
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. asserted
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. asserted
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. asserted
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. asserted
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. asserted
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. asserted
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." asserted
auditors → publish → risk
LAist had previously reported that hundreds of apartments rented by the authority to serve as housing for the homeless sat empty. asserted
hundreds → report → homeless
LAHSA's mismanagement has become a focal point in Los Angeles' mayoral election. asserted
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. asserted
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. asserted
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. asserted
County → remove → department
In July, LAHSA reported that homelessness across all of Los Angeles County had risen 1.2 percent. asserted
homelessness → report → County
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