# Feds bust LA homeless fraud scheme > FBI arrests three homeless service leaders for stealing $23M in taxpayer funds - Title: Feds bust LA homeless fraud scheme · California Post - Summary: FBI arrests three homeless service leaders for stealing $23M in taxpayer funds FBI targets LA homeless service fraudsters who diverted $23 million in public… - Keywords: fbi, laha, homeless services, alexander soofer, lakiya malone, michael young, home at last, wire fraud, taxpayer funds, skid row, los angeles, federal funds - Source: California Post — https://nypost.com/2026/09/16/us-news/fbi-smash-homeless-scheme-as-charity-worker-with-shady-list-of-ghost-clients-dragged-from-her-home - Published: 2026-09-16T13:57:12+00:00 - Read time: 2 min - Topics: fbi, laha, homeless services, alexander soofer, lakiya malone, michael young, home at last, wire fraud, taxpayer funds, skid row, los angeles, federal funds ## Feds target homeless fraud FBI arrested Lakiya Malone, 48, for allegedly taking $180,000 in bribes from homeless service fraudster Alexander Soofer > Malone allegedly accepted more than $180,000 in bribes and kickbacks in an illegal homeless services scheme ## Soofer's $23M fraud scheme Alexander Soofer, 42, admitted stealing $23 million in public funds meant for homeless services through fake referrals > Soofer allegedly received more than $17 million from SSG during the scheme, inflated substantially by these fraudulent referrals ## Young's luxury spending Michael Young, founder of Home at Last, spent stolen funds on a $7 million mansion, luxury car, and nightclub in Inglewood > Young allegedly spent some of the money he stole on a bingo hall and a nightclub ## Ghost clients scheme Malone created fake homeless clients to inflate Soofer's referrals and receive bribes through shell companies > In reality, the payments were tied to the number of referrals Malone sent and to ghost clients whose files she helped fabricate ## FBI's anti-fraud task force Los Angeles prosecutor Bill Essayli leads a task force targeting fraud at the homeless services agency > We're working our way up the chain. We're getting to those who are enabling the fraud, and not just the fraudsters themselves ## Taxpayer funds diverted Feds found $23 million in public funds diverted to personal luxuries by three homeless service leaders > The money went to enrich these fraudsters directly ## Soofer's lavish lifestyle Soofer used stolen funds to buy a $7 million mansion, Range Rover, private jet, and luxury resorts > He allegedly used the cash to buy a seven million dollar mansion in Westwood ## Young's fake vendor scheme Young created fake companies to bill LAHSA millions for services that never happened > He used these companies to fraudulently bill LAHSA millions of dollars for services that never happened ## Mitchell remains at large Donye Mitchell, CEO of The Big Blue Umbrella, is a fugitive who kept $315,000 of stolen homeless funds for himself > Mitchell spent some of the money on bail after he was arrested for domestic violence and assault ## Skid Row crisis Over 70,000 homeless people live in Los Angeles County, with many in Skid Row where death is common > Death is commonplace, and hope is rare in Skid Row ## Feds suspend funding Trump administration suspended federal funds to LAHSA after corruption concerns > The LAHSA has had recurring problems with corruption and late payments to nonprofit providers ## FBI's wire fraud charges All three suspects face wire fraud charges with sentences up to 20 years in federal prison > Young is charged with wire fraud, a felony that carries a sentence of up to twenty years in federal prison ## Funds mismanagement LAHSA mismanaged $1 billion in federal funding for homeless services since 2021 > The federal government has provided more than one billion dollars in funding for homeless services in LA since 2021 ## Feds find cash trail Agents discovered cash, passports, and cash-counting machines in homes connected to the fraud scheme > Cash found in CC-2 ## Key takeaway FBI targets LA homeless service fraudsters who diverted $23 million in public funds for personal luxuries