{"id":2662595,"date":"2026-09-16T16:19:01","date_gmt":"2026-09-16T20:19:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-arrests-la-nonprofit-employees-in-connection-to-multimillion-dollar-homeless-fraud-schemes\/"},"modified":"2026-09-16T16:21:55","modified_gmt":"2026-09-16T20:21:55","slug":"doj-arrests-la-nonprofit-employees-in-connection-to-multimillion-dollar-homeless-fraud-schemes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-arrests-la-nonprofit-employees-in-connection-to-multimillion-dollar-homeless-fraud-schemes\/","title":{"rendered":"DOJ Arrests LA Nonprofit Employees in Connection to Multimillion-Dollar Homeless Fraud Schemes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdoj-arrests-la-nonprofit-employees-in-connection-to-multimillion-dollar-homeless-fraud-schemes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2662595&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Two individuals involved in homeless nonprofit organizations in Los Angeles have been arrested on federal charges, with a third remaining at large. Prosecutors allege that over $118 million in taxpayer funds, intended for tents and beds, were misused for personal expenses such as luxury travel, a nightclub, vintage cars, and other unrelated projects, including the construction of a nightclub called Six Seven Five Lounge. Michael Young and Lakiya Malone were taken into custody, while Donye Mitchell is a fugitive. The <a href=\"https:\/\/amzn.to\/3YuVZYV\" >examination uncovered schemes involving fake vendors<\/a>, bribe-taking, and misappropriation of funds, with some executives living far better than thier clients. The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/former-illinois-speaker-madigan-to-begin-prison-sentence\/\" title=\"Former Illinois speaker Madigan to begin prison sentence\">case highlights ongoing issues<\/a> with fraud and waste in homelessness services funding, despite significant public spending aimed at reducing homelessness in Los angeles. Court proceedings are upcoming, and these arrests are part of a broader federal crackdown on such financial misconduct.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>Federal agents arrested two Los Angeles-area homeless nonprofit workers Wednesday and charged a third who remains at large.<\/p>\n<p>Prosecutors said taxpayer money meant for tents and beds bought a nightclub, trips, and kickbacks instead.<\/p>\n<p>Michael Young, 46, a founder of Culver City-based Home At Last, and Lakiya Malone, 48, who worked at Special Service for Groups, were taken into custody, the U.S. Attorney\u2019s Office for the Central District of California <a href=\"https:\/\/www.justice.gov\/usao-cdca\/pr\/2-defendants-employed-la-area-homeless-nonprofits-arrested-federal-charges-alleging\" target=\"_blank\" rel=\"noopener\">said<\/a>.<\/p>\n<p>Donye Mitchell, 55, CEO of The Big Blue Umbrella, is a fugitive.<\/p>\n<p>Young\u2019s nonprofit took in more than $118 million in public funds since 2019, according to charging papers summarized by the <a href=\"https:\/\/www.latimes.com\/california\/story\/2026-09-16\/la-homeless-services-federal-charges\" target=\"_blank\" rel=\"noopener\">Los Angeles Times<\/a> and the <a href=\"https:\/\/apnews.com\/article\/fraud-trump-homelessness-california-8848e96f919fa18e6958c5f2d2180bde\" target=\"_blank\" rel=\"noopener\">Associated Press<\/a>.<\/p>\n<p>Prosecutors alleged that he diverted about $7.5 million through fake vendors. They said the money went to luxury travel, vintage cars, and commercial projects, including construction of a nightclub and bingo hall in Inglewood called the Six Seven Five Lounge.<\/p>\n<p><a href=\"https:\/\/www.breitbart.com\/crime\/2025\/10\/16\/trump-doj-busts-two-for-allegedly-defrauding-l-a-homeless-funding\/\" target=\"_blank\" rel=\"noopener\">Malone<\/a> faces a 21-count indictment. Officials say she took more than $180,000 in bribes and kickbacks to enroll \u201cghost participants\u201d in homelessness programs.<\/p>\n<p>The alleged payoffs came from Alexander Soofer, executive director of Abundant Blessings. Soofer was charged earlier this year and has agreed to plead guilty to wire fraud and money laundering.<\/p>\n<p>In a separate case, prosecutors said he steered tens of millions in LAHSA housing money toward a Westwood house, a Range Rover, and private-jet travel.<\/p>\n<p>Mitchell allegedly won more than $1.2 million from a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/seattle-and-king-county-fund-organization-that-staged-i-5-traffic-jam-protest-washington-examiner\/\" title=\"Seattle and King County fund organization that staged I-5 traffic jam protest - Washington Examiner\">county-funded nonprofit<\/a> by misstating what his group could deliver. Prosecutors said he used award money for credit-card debt, relatives, video games, and unrelated legal bills.<\/p>\n<p>Young and Malone have not entered pleas. The charges are allegations.<\/p>\n<p>Los Angeles <a href=\"https:\/\/oversight.house.gov\/release\/burchett-opens-hearing-on-fraud-and-failure-in-federally-funded-homelessness-services\/\" target=\"_blank\" rel=\"noopener\">has spent<\/a> billions on decreasing street homelessness while encampments remained. Federal prosecutors now describe a contractor class that billed the crisis.<\/p>\n<p>First Assistant U.S. Attorney Bill Essayli has called California a \u201cposter child\u201d of waste in prior homelessness fraud cases.<\/p>\n<p>White House rapid response and local news circulated the arrests as part of a wider crackdown.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">.@AAGMcDonald announces arrests made in a multi-million dollar fraud bust. Fraudsters spent millions of taxpayer dollars meant for housing the homeless on trips to Tahiti and a nightclub.<\/p>\n<p>The days of ripping off American taxpayers are OVER. https:\/\/t.co\/K9DxMn2zYG<\/p>\n<p>\u2014 Rapid Response 47 (@RapidResponse47) <a href=\"https:\/\/x.com\/RapidResponse47\/status\/2100263166202523670?\">September 16, 2026<\/a><\/p>\n<\/blockquote>\n<div class=\"firefly-embed\"> <iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/O-2DQoFJXkQ\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><br \/> <\/iframe><\/div>\n<p>The pattern in the paperwork is consistent: invoices for people who were not housed, properties that were not shelters, and executives who lived far better than the clients on the sidewalk.<\/p>\n<p>A nightclub built with homeless money is the exhibit, not the footnote.<\/p>\n<p>Court dates come next. And through all of it, the tents are still there.<\/p>\n<div style=\"background-color: #f7f7f7; color: #171717; display: flex;font-size: 16px;font-weight: 600;line-height: 1.5;margin: 24px 0;padding: 18px 20px 18px 30px;text-align: left;\">\n<div style=\"align-self: stretch;border-left: 3px solid #171717;flex-shrink: 0;padding-left: 20px;\"><\/div>\n<p><a style=\"text-decoration: none;\" href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.westernjournal.com\/\">Choose The Western Journal as your preferred source on Google and never miss reporting that defends truth, protects freedom, and advances Western civilization<\/a><\/div>\n<p style=\"border: 1px solid #f5f5f5; padding: 16px;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/?wj_source=article\">Advertise Today<\/a>.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> \t\t\t\t\t<input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\"> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> \t\t<script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey == typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts = { \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs = [ 'name', '', 'message' ];  \t\t\t\t\tfor( var i = 0; i < inputs.length; i++ ) if( ! 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