LOS ANGELES, Sept. 18 (Our Los Angeles) — Federal prosecutors in Los Angeles have charged Michael Young, Lakiya Malone and Donye Mitchell in separate cases involving alleged fraud, bribery and misuse of taxpayer money intended for homeless housing and services.
The U.S. Attorney’s Office for the Central District of California announced the cases Sept. 16, 2026. Young and Malone were arrested. Mitchell was charged with wire fraud and was described by prosecutors as a fugitive.
The allegations have not been proven in court. Young and Malone had not entered pleas in the records described by prosecutors. A defendant is presumed innocent unless proven guilty.
What is Michael Young accused of?
Young, a founder of Culver City-based Home At Last, was arrested on a criminal complaint alleging wire fraud. Prosecutors say Home At Last received more than $100 million in taxpayer funds through contracts connected to homeless housing and services.
According to the complaint, Young used shell companies and fraudulent billing practices to divert more than $7.5 million. The Justice Department alleges the money was moved into real estate and businesses that were not legitimate costs of providing homeless services.
Prosecutors also allege that more than $1 million was used to open and operate Six Seven Five Lounge, a restaurant and nightclub in Inglewood, along with an adjacent bingo hall.
The complaint further alleges that Young used public money for personal expenses. Those expenses included a trip to Tahiti costing nearly $50,000 and more than $140,000 spent restoring a vintage Chevrolet Impala, according to prosecutors.
The Justice Department’s announcement described the funds as taxpayer money received through contracts with the Los Angeles Homeless Services Authority and other public entities. It did not establish that all of Home At Last’s funding was improperly used; the allegations concern the money prosecutors say was diverted.
What is alleged against Lakiya Malone?
Malone, an employee of Special Service for Groups, was arrested on a 21-count federal indictment. Prosecutors allege she accepted more than $180,000 in bribes and kickbacks from Alexander Soofer, the executive director of Abundant Blessings.
The indictment alleges that Malone steered people who did not qualify — or did not actually participate — into homelessness programs. Prosecutors call them “ghost” participants and say Soofer then billed for services that were not provided.
Soofer was charged separately. According to the Justice Department, he has agreed to plead guilty to one count of wire fraud and one count of money laundering. His agreement is not a finding against Malone, who faces a separate case.
What is alleged against Donye Mitchell?
Mitchell, the chief executive of The Big Blue Umbrella, was charged with wire fraud. Prosecutors described him as a fugitive, meaning authorities said he had not been taken into custody when the charges were announced.
The Justice Department’s announcement provided fewer details about the allegations against Mitchell than it did about the cases involving Young and Malone. The charges against him remain allegations unless and until they are proven in court.
Why are there different types of charges?
A criminal complaint, such as the one filed against Young, is a sworn document used to accuse someone of a federal crime. It can support an arrest, but prosecutors generally must pursue further court proceedings before a case can go to trial.
An indictment, such as the one filed against Malone, is issued by a grand jury. It formally charges a person with federal crimes, but it is still not proof of guilt.
Wire fraud generally involves using electronic communications to carry out a scheme to obtain money or property through deception. Bribery and kickbacks involve allegedly giving or receiving something of value to influence an official or business decision. Money laundering generally refers to transactions intended to conceal the source or movement of criminal proceeds.
What happens next?
The cases will proceed in federal court in the Central District of California. The records described in the Justice Department’s announcement did not identify case numbers, judges, arraignment dates or defense attorneys for Young, Malone or Mitchell.
The allegations are significant because they involve programs intended to address homelessness in Los Angeles County and the broader Los Angeles area. The organizations named in the cases worked with public money tied to local, state or federal homelessness programs.
The Justice Department announcement did not include responses from Young, Malone, Mitchell, Home At Last, Special Service for Groups or The Big Blue Umbrella.
