Millions diverted from homeless aid

Federal authorities charged three nonprofit leaders with stealing over $118 million in taxpayer funds meant for LA homeless services. The money allegedly went to personal expenses including a Tahiti vacation, a luxury nightclub, and high-end vehicles.

“The days of these wire fraud experts flying on private jets, driving around Beverly Hills in Range Rovers and doing lavish things is over.”

Michael Young's shell company scheme

Michael Young, 46, founder of nonprofit Home At Last, received $118 million in public contracts. Prosecutors say he used shell companies and fraudulent billing to divert funds, including $1 million to open a high-end nightclub in Inglewood.

“The taxpayers did not sign up to fund this nightclub.”

Luxury spending on public dime

Young allegedly spent nearly $50,000 on a Tahiti vacation and $140,000 restoring a vintage Chevrolet Impala using diverted homeless aid funds. He also spent over $1 million opening and operating Six Seven Five Lounge, a high-end restaurant and nightclub.

Bribes for fake homeless referrals

Lakiya Malone, 48, an employee of Special Service for Groups, accepted over $180,000 in bribes from nonprofit executive Alexander Soofer. In exchange, she allegedly provided priority referrals for ghost homeless participants with fabricated files and forged documents.

Soofer admits to $23 million theft

Alexander Soofer, executive director of Abundant Blessings, obtained $23 million in public homelessness funds and pocketed at least $2 million for himself and unrelated businesses. He has agreed to plead guilty to wire fraud and money laundering.

Fugitive CEO faces charges too

Donye Mitchell, 55, CEO of The Big Blue Umbrella, is a fugitive charged with obtaining $1.2 million in grant funding through false claims. Prosecutors allege he spent the money on personal expenses including bail bonds, credit card debt, and PlayStation charges.