Two Nonprofit Workers Arrested on Corruption Charges Tied to Los Angeles Homelessness Funds
Federal prosecutors allege the pair misappropriated millions of taxpayer dollars meant for homelessness services, amid a broader push by Trump administration officials to probe alleged fraud in Democratic-led states.
Federal law enforcement officers have arrested two employees of California-based homelessness nonprofits on corruption charges, according to the US Department of Justice, which alleges the pair misappropriated millions of dollars in taxpayer funds intended for homelessness services.
The department identified the two individuals as Michael Young, a founder of the Culver City-based nonprofit Home At Last, and Lakiya Malone, an employee of the Los Angeles-based Special Service for Groups. Federal officials said the two face bribery-related charges connected to their handling of public funds allocated to address homelessness in the Los Angeles area.
According to the Justice Department, Young and Malone are expected to appear in court on Wednesday to face the charges. Further details about the specific allegations, the amount of money involved, and the mechanisms by which the funds were allegedly diverted have not yet been made public by prosecutors.
The arrests come as Trump administration officials have signaled increased scrutiny of nonprofit organizations and government spending programs in Democratic-led states, which they have characterized as targets for investigations into alleged fraud. The Justice Department did not specify whether the case against Young and Malone was part of a broader, coordinated federal effort targeting homelessness services funding specifically, though it was described by the source as occurring within that wider context of federal attention on spending in blue states.
Home At Last and Special Service for Groups are among numerous nonprofit organizations that receive government contracts and grants to provide services to homeless populations in the Los Angeles region, an area that has faced a persistent and highly visible homelessness crisis in recent years. Neither organization's response to the allegations was included in the information provided by federal authorities.
This is a developing story, and further details are expected to emerge as the case proceeds through the court system.
Sources
- LA homelessness non-profit workers arrested over alleged corruption and bribes — The Guardian — World
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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