Three Charged in $12M Fraud Scheme Targeting Homeless Aid
WHO:
ABC News - Three defendants charged: Lakiya Malone, 48; Michael Young, 46; Donye Mitchell, 55.
ABC News - Michael Young is the founder of the nonprofit Home At Last.
ABC News - Donye Mitchell is the CEO of Big Blue Umbrella.
ABC News - Alexander Soofer, 42, pleaded guilty to wire fraud and money laundering charges.
WHAT:
ABC News - The Trump administration emphasized a crackdown on fraud and waste in government and aid programs, with 12 people arrested earlier in the week for stealing over $10 million in federal childcare aid.
Los Angeles Times - Young allegedly spent more than a million dollars in taxpayer money to open and operate a high-end restaurant and nightclub in Inglewood called Six Seven Five Lounge, and misused millions in taxpayer funds on luxury vacations, vintage car restorations, and commercial properties unrelated to homeless housing.
Los Angeles Times - LAHSA, which paid the nonprofit Home At Last more than $75 million for homeless housing services, canceled its contracts with Home At Last in June after evidence of wrongdoing emerged.
Los Angeles Times - Mitchell allegedly used money from a Los Angeles County-funded nonprofit for personal expenses, including paying his own bail bond costs after a 2024 arrest for domestic violence and assault, inflated salary payments, credit card debt, family transfers, rent, and PlayStation charges.
ABC News - The defendants allegedly used the stolen funds to buy real estate, take luxury trips, and purchase vintage vehicles.
ABC News - Young is accused of using the proceeds to take luxury trips to Tahiti and to open a nightclub called the Six Seven Five Lounge in Inglewood.
ABC News - Mitchell's organization, Big Blue Umbrella, was awarded more than $1.2 million from a federally supported nonprofit for housing and mental healthcare aid.
ABC News - Mitchell allegedly misstated his organization’s ability to provide services and misused funds for personal expenses, including credit card debts and video games.
ABC News - Soofer admitted to billing federal and state authorities for homelessness aid services when there were no participants in his programs, stealing at least $2 million.
ABC News - The three defendants are charged with stealing $12 million in homelessness aid.
ABC News - Young misused an estimated $7.5 million in taxpayer funds through fake contractors.
ABC News - Malone accepted more than $180,000 in bribes and placed non-homeless individuals in aid programs.
ABC News - Mitchell misused funds to pay off credit card debts, give money to family, buy video games, and pay legal expenses.
ABC News - A fourth person, Alexander Soofer, admitted to billing for services with no participants in his programs.
WHERE:
ABC News - The fraud scheme took place in Southern California, specifically Los Angeles.
ABC News - Young opened a nightclub called the Six Seven Five Lounge in Inglewood.
WHEN:
ABC News - The three defendants were charged on a Wednesday.
ABC News - Young's nonprofit, Home At Last, received more than $118 million in public funds since 2019.
WHY:
Los Angeles Times - First Assistant U.S. Attorney Bill Essayli stated, “The scale and brazenness of these fraudsters expose a profound failure by the State of California and Los Angeles County to safeguard public funds.”
ABC News - Brian D. Harrison, acting inspector general at the Housing and Urban Development Department, stated, “Stealing from programs meant to feed, shelter, and support people experiencing homelessness isn’t just a financial crime – it’s an attack on the most vulnerable communities provided for by (these) programs.”
ABC News - The fraud is described as an attack on vulnerable communities meant to be supported by homelessness aid programs.
HOW:
ABC News - The defendants allegedly used funds from contracts to pay personal expenses, accepted bribes, and billed for services that were never provided.
ABC News - Young created shell companies to overbill federal and local authorities.
(UPDATED September 16, 2026 22:02 UTC)
The Trump administration is taking a strong stance against fraud and waste in government aid programs, highlighted by the recent arrest of 12 individuals who allegedly stole over $10 million in federal childcare aid. Among those implicated is a man who reportedly misused taxpayer money to fund a high-end restaurant and nightclub in Inglewood, as well as for luxury vacations and vintage car restorations. First Assistant U.S. Attorney Bill Essayli pointed out that the scale of these fraudulent activities reveals significant shortcomings in California and Los Angeles County's ability to protect public funds.
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(UPDATED September 16, 2026 19:04 UTC)
In a significant development, several defendants are accused of misusing stolen funds for luxury trips, real estate purchases, and vintage vehicles, with one individual allegedly using proceeds to fund a nightclub in Inglewood. Mitchell's organization, Big Blue Umbrella, received over $1.2 million for housing and mental healthcare aid, but he is accused of misrepresenting his services and misusing funds for personal expenses. Brian D. Harrison, acting inspector general at the Housing and Urban Development Department, emphasized that stealing from programs designed to support vulnerable communities is not just a financial crime, but an attack on those in need.
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(UPDATED September 16, 2026 18:02 UTC)
Three defendants, Lakiya Malone, Michael Young, and Donye Mitchell, have been charged with stealing $12 million in homelessness aid in Southern California, specifically Los Angeles. Michael Young, the founder of the nonprofit Home At Last, allegedly misused an estimated $7.5 million in taxpayer funds through fake contractors, while Malone accepted over $180,000 in bribes and placed non-homeless individuals in aid programs, and Mitchell misused funds for personal expenses. Additionally, a fourth individual, Alexander Soofer, pleaded guilty to wire fraud and money laundering, admitting to billing for services that had no participants in his programs.