The Department of Housing and Urban Development says its count of fraud tied to Los Angeles homelessness programs has climbed to $130 million, and three people now face federal charges over one slice of that total. HUD Secretary Scott Turner announced the tally alongside word that federal prosecutors charged three individuals with stealing $14 million meant for the city’s homeless-services system. The case centers on nonprofits that were supposed to route federal and local money toward housing and shelter, and on how much of that money allegedly never got there. All three defendants face charges rather than convictions at this stage, and each is entitled to a presumption of innocence unless and until a court finds otherwise.
A $130 Million Fraud Tally, Three New Charges
HUD’s Sept. 18, 2026 release put the total fraudulent funds tied to the Los Angeles investigation at $130 million, with $75 million of that having moved through the Los Angeles Homeless Services Authority, known as LAHSA. Of the three people HUD says are charged with stealing $14 million from homeless assistance programs, the agency names Michael Young, Lakiya Malone and Donye Mitchell. “In concert with federal law enforcement, we arrested criminals who allegedly stole $14 million meant to help America’s most vulnerable,” Secretary Turner said, in a quote HUD’s release carried and that a syndicated copy of the release on EIN Presswire independently reproduced.
Two things worth having ready: A way to verify who is actually calling or knocking on behalf of a charity, and a short list of who to contact first if a donation or personal information already went to the wrong place, matter most exactly when a case like this one is in the news and copycat solicitations tend to follow. See the caller-verification steps and the report-to list in The Senior Fraud Defense & First-Hour Recovery Kit.
The Nonprofit At The Center: Home At Last
Michael Young ran Home At Last, a Culver City nonprofit that HUD says received more than $100 million and misappropriated more than $12 million of it. The Justice Department’s own charging documents, announced separately by the U.S. Attorney’s Office for the Central District of California on Sept. 16, 2026, put Young’s numbers at $118 million received and $7.5 million misappropriated, and charge him with wire fraud. The two-day gap and the differing figures reflect two agencies describing overlapping but not identical scopes: HUD’s tally reflects its broader fraud count for the LAHSA-connected investigation, while the Justice Department’s figures reflect what prosecutors are prepared to charge in Young’s specific case.
Two More Charged: Bribery And Grant Fraud
Lakiya Malone, tied to the nonprofit Special Service for Groups, faces a 21-count indictment that includes wire fraud, bribery and kickback charges, with prosecutors alleging she took more than $180,000 in bribes and kickbacks, according to the Justice Department’s release. Donye Mitchell, connected to a Los Angeles nonprofit called The Big Blue Umbrella, is charged with wire fraud over roughly $1.2 million in grant money prosecutors say was fraudulently awarded. A fourth person, Alexander Soofer, was charged separately in a related case involving $23 million obtained and at least $2 million allegedly pocketed, and has agreed to plead guilty; HUD’s own announcement of “three” charged does not include him, since his case moved on its own track.
Where The Money Allegedly Went
HUD’s release says investigators traced diverted funds into shell companies, real estate purchases, nightclubs and bingo operations, rather than the housing and shelter services the money was designated for. The agency also noted that its funding to the Los Angeles Continuum of Care has grown substantially over the past decade, reaching roughly $1 billion over five years, which HUD frames as part of why the scale of alleged diversion matters. Assistant Attorney General Colin M. McDonald, announcing the Justice Department’s charges, said: “My message to every fraudster who steals from the vulnerable is clear: We will track you down, bring charges where the evidence leads.”
A Charity’s Name Is Not Proof It Is One
A federal fraud case built around homeless-services nonprofits does not come with a public list of which local charities and outreach programs are legitimate, and neither HUD’s release nor the Justice Department’s charging documents help a donor or a family member evaluate a solicitation that shows up at their own door afterward. That verification gap is exactly what tends to widen once a fraud case like this one is in the news and copycat appeals follow.
The Senior Fraud Defense & First-Hour Recovery Kit covers verifying a caller or visitor before anything changes hands and includes a fraud evidence and report log for documenting a suspicious solicitation.
Look up the caller-verification steps in The Senior Fraud Defense & First-Hour Recovery Kit.
This article was produced with AI assistance and checked against the primary sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
