LOS ANGELES COUNTY—On September 16, the U.S. Department of Justice announced the arrests of two individuals on federal charges for the misuse of funds intended for homeless services. A third defendant remains at large.
The DOJ’s Homeless Fraud and Corruption Task Force was tasked with the investigation of the fraud, waste, and corruption that involved taxpayer funding allocated for the eradication of homelessness across a seven-county jurisdiction.
“Today, the Department of Justice, with the full force of the federal government, is announcing charges in a major fraud takedown targeting schemes that stole millions from programs meant to house California’s homeless. As alleged, Michael Young, through Home at Last, received more than $100 million in taxpayer funds and misappropriated more than $7.5 million, diverting that money into shell companies, real estate, and even a nightclub and bingo hall.
That scheme is now halted in its tracks. My message to every fraudster who steals from the vulnerable is clear: We will track you down, bring charges where the evidence leads, and work relentlessly to reclaim every taxpayer dollar you stole, Assistant Attorney General Colin M. McDonald, National Fraud Enforcement Division, stated.
The founder of the Culver City-based non-profit, Home at Last, Michael Young, 46, of Baldwin Hills, is charged with wire fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.
CEO of the non-profit, Big Blue Umbrella, Donya, aka “Danya” Mitchell, 55, of Orange County, was charged in a criminal complaint of alleged misuse of $1.2 million in grant money from a Los Angeles County-funded non-profit. Mitchell is charged with wire fraud that carries a maximum sentence of 20 years in federal prison. Mitchell is considered a fugitive from justice.
Two cases, the U.S. vs. Lakiya Malone and the U.S. vs. Alexander Soofer are intertwined. On September 16, the local media captured video footage of FBI agents wearing vests surrounding the house of Lakiya Malone, 48 of South LA. She was arrested on a 21-count federal indictment for accepting over $180,000 in bribes and kickbacks from, Alexander Soofer, the Executive Director of the the non-profit, Abundant Blessings.
According to the DOJ complaint, Soofer will be charged with one-count wire fraud for his part in the scheme for agreeing to testify. He also admitted to accepting $23 million public funds intended for the homeless, and pocketed at least $2 million of it for his own enrichment. He has agreed to plea guilty.
“Stealing from programs meant to feed, shelter, and support people experiencing homelessness isn’t just a financial crime. It’s an attack on the most vulnerable communities provided for by HUD programs. HUD-OIG is steadfast in pursuing those who exploit federal housing programs, and this case underscores the strength of our partnerships with law enforcement and prosecutors. Together, we protect taxpayer dollars and deliver justice for victims,” stated Brian D. Harrison, Acting Inspector General of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
The full-text with all of the charges and crimes committed may be found on the DOJ website.
