LOS ANGELES – Secretary Turner joined federal law enforcement to arrest fraudsters for abusing taxpayer funds that should have been used to combat homelessness. These fraudsters have received more than $130 million taxpayer dollars, including $75 million through the Los Angeles Homeless Services Authority (LAHSA), whose lack of due diligence has enabled record homelessness.

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“In concert with federal law enforcement, we arrested criminals who allegedly stole $14 million meant to help America’s most vulnerable,” said Secretary Turner, member of the White House Task Force to Eliminate Fraud. “Make no mistake, the Trump Administration will not tolerate the theft or abuse of taxpayer dollars. From coast to coast, we are taking inventory, and those who break the law and steal from taxpayers – and those who enable it – will face law and order. Our message to the homeless industrial complex is unmistakable: the days of blank checks are over.” 

“Blue cities have been giving millions upon millions of your tax dollars to their crooked friends for years. President Trump and Vice President Vance have a simple message: It ends today,” said Scott Brady, Executive Director of the White House Task Force to Eliminate Fraud.

“Today the Department of Justice, with the full force of the federal government, is announcing charges in a major fraud takedown targeting schemes that stole millions from programs meant to house California’s homeless,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “As alleged, Michael Young, through Home at Last, received more than $100 million in taxpayer funds and misappropriated more than $12 million, diverting that money into shell companies, real estate, and even a nightclub and bingo hall. That scheme is now halted in its tracks. My message to every fraudster who steals from the vulnerable is clear: We will track you down, bring charges where the evidence leads, and work relentlessly to reclaim every taxpayer dollar you stole.” 

“Today’s arrests mark a major success for our Homelessness Fraud and Corruption Task Force and this Administration’s commitment to protecting taxpayers,” said First Assistant United States Attorney Bill Essayli. “The scale and brazenness of these fraudsters expose a profound failure by the State of California and Los Angeles County to safeguard public funds. Millions intended to house the homeless allegedly financed private real estate, a nightclub, a bingo hall, and personal expenses. Taxpayers deserve accountability. We will follow the money, expose the corruption, and prosecute those who exploit the American people for personal gain.” 

“Stealing from programs meant to feed, shelter, and support people experiencing homelessness isn’t just a financial crime – it’s an attack on the most vulnerable communities provided for by HUD programs,” said Brian D. Harrison, Acting Inspector General of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “HUD-OIG is steadfast in pursuing those who exploit federal housing programs, and this case underscores the strength of our partnerships with law enforcement and prosecutors. Together, we protect taxpayer dollars and deliver justice for victims.” 

Criminal charges have been brought against: 

• Michael Young, who was awarded funds by LAHSA, gamed the system by submitting fake bids for shell companies to pocket millions of dollars. He siphoned millions to open a nightclub, a bingo hall, and gambling business. 
• Lakiya Malone, who accepted bribes and kickbacks by charging for nonexistent homeless "ghosts” who do not receive services. 
• Donye Mitchell, who used federal funds to pay off his bail for domestic violence and assault charges, inflate his salary, make personal credit card payments, and buy gifts for family. 

The Los Angeles Continuum of Care, led by LAHSA, has received approximately $1 billion in taxpayer dollars over the last five years. Despite receiving more federal homelessness funding than any other jurisdiction in the nation, Los Angeles remains the epicenter of the nation’s drug-fueled homelessness crisis. In the last decade, HUD funding to LA nearly tripled, yet homelessness in LA doubled. 

In June, Secretary Turner suspended funding to LAHSA, the lead agency for LA’s homelessness response, which has received over $1 billion taxpayer dollars since 2013 despite its record of mismanagement, fraud, and abuse.  

Last month in Los Angeles, Secretary Turner exposed California’s failed policies which ignited a drug-fueled homelessness crisis and doubled down on the Administration cutting off funding for organizations that abuse taxpayer dollars. 

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