# Federal fraud crackdown targets LA homeless aid theft

> Three nonprofit leaders charged with diverting millions in taxpayer funds meant for homeless services to personal luxuries.
- Title: Federal fraud crackdown targets LA homeless aid theft
- Summary: Three nonprofit leaders charged with diverting millions in taxpayer funds meant for homeless services to personal luxuries. Federal authorities are…
- Keywords: michael young, home at last, lakiya malone, donye mitchell, los angeles, homeless services, federal fraud, nonprofit fraud, fbi investigation, taxpayer funds, wire fraud, money laundering
- Source: Fox News — https://foxnews.com/us/taxpayer-funds-meant-la-homeless-allegedly-spent-tahiti-trip-nightclub-luxury-cars-feds
- Author: Stephen Sorace
- Published: 2026-09-16T00:00:00+00:00
- Read time: 1 min
- Topics: michael young, home at last, lakiya malone, donye mitchell, los angeles, homeless services, federal fraud, nonprofit fraud, fbi investigation, taxpayer funds, wire fraud, money laundering
## 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.
## Key takeaway

Federal authorities are prosecuting nonprofit leaders who allegedly stole over $118 million in public funds intended for homeless housing and services, spending it on vacations, nightclubs, and luxury goods.