United States | Allegations of Misusing More Than $12 Million in Homelessness Funds | CUAC

Civil Union – Follow-up The U.S. Department of Justice announced the arrest of two individuals and the filing of charges in separate cases involving fraud and the misuse of public funds allocated to homelessness programs in the Los Angeles area. According to the Department of Justice, Michael Young, founder of the nonprofit organization Home At Last, is accused of misappropriating more than $7.5 million in funds intended to provide housing for homeless people through shell companies and allegedly fraudulent invoices. Prosecutors also allege that some of the funds were used for real estate, a restaurant, a nightclub, and a bingo hall. The department said Young received more than $118 million through contracts with public entities, including more than $75 million from the Los Angeles Homeless Services Authority. He is accused of diverting more than $12 million in public funds to companies, properties, and personal and business purposes unrelated to housing for homeless people. In a separate case, authorities arrested Lakia Malone, an employee of an organization providing services to homeless people, on allegations that she received more than $180,000 in bribes and commissions in exchange for referrals to housing programs, including what authorities described as “sham beneficiaries.” Donnie Mitchell was also charged in a separate case with fraudulently obtaining more than $1.2 million in public grant funds, while Alexander Sofer, in a related case, agreed to plead guilty to charges of wire fraud and money laundering. The Department of Justice emphasized that the allegations contained in the complaints and indictments are merely accusations and that the defendants are presumed innocent unless proven guilty in court. Source: U.S. Department of Justice