LOS ANGELES, CA — Federal authorities arrested two people Wednesday and charged a third who remains a fugitive in separate cases claiming that millions of dollars meant to combat homelessness in Los Angeles County were diverted through fraud, bribery and kickbacks, according to the U.S. Attorney's Office.
Among those arrested was Michael Young, 46, of Baldwin Hills, a founder of Culver City-based nonprofit Home At Last, who is accused of misappropriating more than $7.5 million in taxpayer money intended for homeless housing.
Young is charged with wire fraud, which carries a maximum sentence of 20 years in federal prison.
Home At Last received more than $118 million from the Los Angeles Homeless Services Authority, the city and county of Los Angeles and the U.S. Department of Housing and Urban Development. LAHSA alone paid the nonprofit more than $75 million for homeless housing services, according to federal prosecutors.
Prosecutors claim Young created sham vendors and used fake bids, forged signatures and fraudulent invoices to make the businesses appear to be legitimate third-party contractors.
Prosecutors claim the companies had no employees, offices or legitimate operations, and their bank accounts were controlled by Young.
Young is accused of funneling more than $7.5 million through the companies and spending taxpayer money on commercial real estate, luxury vacations, vintage car restorations and businesses unrelated to homeless services.
Authorities said more than $1 million went toward opening and operating Six Seven Five Lounge, an upscale restaurant and nightclub in Inglewood. Federal officials also accused Young of using public money to finance construction of a nightclub and adjacent bingo hall.
LAHSA canceled its contracts with Home At Last in June.
The arrest was one of several cases announced Wednesday by the federal Homelessness Fraud and Corruption Task Force.
In a separate case, Donye Mitchell, 55, also known as Danya Mitchell, of Orange, was charged with wire fraud and remains a fugitive.
Mitchell is the CEO and executive director of Los Angeles-based nonprofit The Big Blue Umbrella.
Prosecutors claim Mitchell applied for more than $9 million in grant funding in January 2024 from the Amity Foundation, which receives Los Angeles County funding.
The Big Blue Umbrella was ultimately awarded more than $1.2 million to provide housing and mental health services.315
After receiving grant money, prosecutors claim Mitchell falsely represented how the money was being spent while using funds for inflated salary payments, his bail bond costs, credit card debt, family transfers, rent and PlayStation charges.
Amity terminated its contract with The Big Blue Umbrella in May 2025 after disbursing about $315,000, citing concerns about spending and unmet milestones, prosecutors claim.
A third case involves Lakiya Malone, 48, of South Los Angeles, an employee of Special Service for Groups who was arrested Wednesday on a 21-count federal indictment, prosecutors said.
Malone is accused of accepting more than $180,000 in bribes and kickbacks from Alexander Soofer, executive director of the nonprofit Abundant Blessings.
Malone's job included referring people experiencing homelessness to housing sites funded by HUD, LAHSA and the city and county of Los Angeles.
Prosecutors claim Soofer paid Malone in exchange for priority referrals, including referrals for "ghost" participants who did not actually live at the housing sites.
Prosecutors claim the payments were made through checks to Malone and an entity she controlled, Grateful Hearts Realty & Consulting, and disguised as consulting fees.
Malone is also accused of helping fabricate files for nonexistent participants using forged sign-in sheets, false eligibility forms and fake welcome letters.
Soofer received more than $17 million from Special Service for Groups during the alleged scheme, according to prosecutors.
In a related case, Soofer has agreed to plead guilty to one count each of wire fraud and money laundering, prosecutors claim.
Soofer admitted in a plea agreement that he obtained $23 million in public money intended to address homelessness and that at least some of it was obtained through fraud. He admitted pocketing at least $2 million for himself and businesses unrelated to homeless housing, according to the U.S. Attorney's Office.
He has agreed to forfeit proceeds from the scheme and is expected to enter his guilty pleas in the coming weeks.
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