US detains workers at homeless organizations — The Guardian
In Los Angeles, United States, federal law enforcement officers detained two employees of nonprofit organizations that assist homeless people. The US Department of Justice says they are suspected of unlawfully using millions of dollars in public funds, The Guardian reports.
Those detained are Michael Young, founder of the Culver City organization Home At Last, and LaKia Malone, an employee of the Los Angeles organization Special Service for Groups. According to the outlet, they were due to appear in court on Wednesday.
Charges against officials
Young has been charged with wire fraud. According to investigators, he misappropriated more than $7.5 million under contracts with Los Angeles County and other government agencies. Prosecutors allege that he used the funds to open an expensive restaurant, nightclub and bingo hall.
Malone is accused of receiving more than $180,000 in bribes and kickbacks from Alexander Soufer, director of another nonprofit organization involved in helping homeless people. Soufer agreed to plead guilty in a separate case.
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The US Department of Justice is also seeking to detain Donye Mitchell, the chief executive of the Los Angeles organization The Big Blue Umbrella. He has been charged with wire fraud. Investigators allege that he fraudulently obtained $1.2 million in public grant funding and spent it on personal needs, including bail, credit card debts and PlayStation payments.
Investigation into funds for homeless people
The investigation is led by a special task force combating fraud and corruption in homeless assistance. It was created last year by US Attorney Bill Essayli to investigate possible fraud, waste, abuse and corruption involving funds allocated to combat homelessness within the seven-county jurisdiction of California's Central District.
The detentions come amid intensified investigations into alleged fraud in states dominated by Democrats, including California. In the summer, the administration of President Donald Trump suspended federal funding for the Los Angeles Homeless Services Authority (LAHSA) while it investigated allegations of possible fraud. At the time, federal funds accounted for about 8% of the agency's budget.
