Overview
- Federal authorities arrested Michael Young and Lakiya Malone on Wednesday and charged them in a Justice Department sweep that alleges about $12 million was diverted from homelessness programs.
- Prosecutors say Young, founder of Home At Last, misused roughly $7.5 million through shell vendors to fund commercial real estate, a nightclub and luxury travel.
- Officials allege Malone accepted more than $180,000 in bribes to place so‑called “ghost” participants into programs who never received services.
- Donye Mitchell was accused of taking about $1.2 million in grant money for personal use and was reported arrested after initially being described as a fugitive; authorities say more prosecutions are expected.
- The arrests came after repeated audits found weak controls at the Los Angeles Homeless Services Authority, prompting HUD actions, LAHSA’s decision to give up regional grant duties, and a push by city and county officials to reorganize how federal homelessness funds are awarded and monitored.