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United States

LA homelessness nonprofit workers arrested on fraud and bribery charges

Thursday, 17 September 2026, 06:32 · 1 min read

US federal authorities have arrested two employees of Los Angeles-area homelessness nonprofits on corruption charges, alleging they misappropriated millions of dollars in taxpayer funds. Michael Young, a founder of Home At Last, faces wire fraud charges for allegedly embezzling more than $7.5 million from county contracts to fund a restaurant, nightclub, and bingo hall, while Lakiya Malone of Special Service for Groups is accused of accepting over $180,000 in bribes and kickbacks. Authorities are also seeking the arrest of Donye Mitchell, CEO of The Big Blue Umbrella, who is alleged to have fraudulently obtained $1.2 million in public grants for personal expenses including bail bonds and credit card debt. The cases were brought by a dedicated homeless fraud and corruption task force and come amid broader Trump administration pressure on California over the handling of public homelessness funds.

Sources
The Guardian — LA homelessness non-profit workers arrested over alleged corruption and bribes ↗︎
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