LA homelessness non-profit workers arrested over alleged corruption and bribes

Key Points:

• Two employees of California homelessness non-profits, Michael Young and Lakiya Malone, were arrested on corruption charges for misappropriating millions in taxpayer funds, with Young accused of embezzling over $7.5 million and Malone charged with accepting bribes exceeding $180,000.
• Donye Mitchell, CEO of The Big Blue Umbrella, is also sought for arrest on wire fraud charges related to the fraudulent use of $1.2 million in public grants for personal expenses.
• The investigation is led by the homeless fraud and corruption taskforce formed to address misuse of homelessness eradication funds in California’s central district, with strong statements from officials emphasizing zero tolerance for fraud.
• These arrests align with broader Trump administration efforts to crack down on alleged fraud in blue states, including suspensions of federal funding to agencies in Los Angeles and Minnesota amid similar accusations.
• Officials, including Los Angeles Mayor Karen Bass and HUD Secretary Scott Turner, have vowed to pursue legal action and recover stolen taxpayer dollars to protect funding intended for vulnerable populations.