Federal prosecutors have charged three individuals in Southern California with allegedly defrauding the government of $12 million in funds meant to assist the homeless. The accused are said to have used the money for personal expenses, including buying real estate, taking luxury vacations, and purchasing vintage vehicles. The charges come amid a broader effort by the Trump administration to crack down on fraud and misuse of public funds, particularly in aid programs. This is the second major fraud case related to government assistance in the region this week, following the arrest of 12 people accused of stealing over $10 million in federal childcare aid.
The three individuals charged are linked to nonprofit organizations that provide homelessness aid in Southern California. These groups often receive funding from city, county, state, or federal agencies to offer housing, food, and other services to homeless individuals. However, prosecutors allege that the defendants misused these funds. They are accused of paying personal expenses, accepting bribes, and billing for services that were never actually provided. Brian D. Harrison, acting inspector general at the U.S. Department of Housing and Urban Development, called the theft an “attack on the most vulnerable communities,” emphasizing that such fraud undermines the very purpose of these aid programs.
Two of the defendants, Lakiya Malone, 48, and Michael Young, 46, were arrested in Los Angeles on Wednesday. A third, Donye Mitchell, 55, remains a fugitive. Young, the founder of a nonprofit called Home At Last, is accused of creating fake companies to overbill public agencies. He allegedly used $7.5 million in taxpayer funds to fund luxury travel, a nightclub in Inglewood, and other real estate ventures. Mitchell, who ran Big Blue Umbrella, is accused of misrepresenting his organization’s ability to provide services and using aid money to pay personal debts, buy video games, and even legal fees. Malone is charged with accepting bribes and placing ineligible individuals into aid programs.
In a separate case, a fourth person, Alexander Soofer, 42, pleaded guilty to stealing at least $2 million in homeless aid. He admitted to working with Malone to bill the government for services that were never provided. These cases are part of a larger federal initiative targeting fraud in government benefit programs. However, some of these efforts have drawn criticism, particularly after the administration’s task force amplified claims against childcare providers in Minnesota, leading to an immigration crackdown despite findings that most of the centers were operating normally. Legal challenges have also blocked attempts to freeze funds in several Democratic-led states.
Federal Prosecutors Charge Individuals in Homelessness Aid Fraud Scheme
AI-rewritten from original reportingHow it works
fraudhomelessness-aidsouthern-californiataxpayer-fundsnonprofit-scandal



