According to CalMatters Housing, federal and local prosecutors announced new charges in an ongoing investigation into fraud within Los Angeles homeless services. Three people face charges in this latest round, following earlier charges against three others, with authorities signaling that more prosecutions are expected. The investigation centers on what prosecutors describe as a systemic failure of oversight and accountability in how public money was being distributed for homeless housing programs.
The case involves Michael Young, who founded a Culver City nonprofit called Home At Last. Young is accused of using shell companies and fraudulent bidding to misappropriate millions in taxpayer funds. According to the reporting, Young's organization received over one hundred million dollars in public funding since 2019, much of it through the Los Angeles Homeless Services Authority. Prosecutors allege Young diverted approximately twelve million dollars, including funds that went toward a high-end nightclub, luxury travel, and the restoration of a classic car.
Another defendant is Lakiya Malone, who worked for a nonprofit called Special Service for Groups and was responsible for referring homeless individuals to housing programs. Malone allegedly accepted bribes from Alexander Soofer, the head of a now-defunct nonprofit, in exchange for referring "ghost" clients who didn't actually exist. This scheme allowed Soofer to bill the city for services that were never provided. Soofer has agreed to plead guilty to wire fraud and money laundering charges and will forfeit money he obtained through the scheme.
A third defendant announced is Donye Mitchell of Big Blue Umbrella, who is accused of lying about his qualifications to receive a county-funded grant. Mitchell allegedly used a portion of the grant money for personal expenses. According to CalMatters, Mitchell has a prior conviction for unemployment fraud from 2011.
Prosecutors pointed to a fundamental breakdown in oversight at the Los Angeles Homeless Services Authority. The federal prosecutor told reporters there was essentially no vetting, auditing, or accounting of how these massive sums were being spent. A court-ordered report from 2025 found that Los Angeles officials failed to properly track billions of dollars in homeless funding and that the authority itself did not accurately monitor its vendors or hold them accountable.
What I am seeing locally is that this situation in Los Angeles should serve as a wake-up call for how we handle public funds in the Bay Area. While our region's real estate and homelessness challenges are significant, stories like this remind us that proper oversight and transparency aren't just nice to have, they're essential. When nonprofits and contractors are spending taxpayer money meant to help vulnerable people, the public deserves to know those funds are actually reaching their intended purpose. For anyone involved in affordable housing or homeless services here in the Bay Area, this is a moment to strengthen your compliance practices and your vetting processes.
