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CrimeQuiet 8d · day 8

FBI busts LA homeless charity fraud ring with $23M in stolen funds

Feds arrest three in sweeping operation targeting corruption at city's lead homeless services agency.

newest coverage 7d agosummary written 3d ago2 pieces Newswires

What to know

  • FBI arrested three people Wednesday in coordinated raids targeting fraud at LA's homeless services authority, uncovering schemes that diverted at least $35 million in public funds.
  • A charity worker allegedly received bribes to fabricate "ghost" homeless clients and steer referrals to fraudulent nonprofits; a nonprofit founder allegedly spent $12 million on nightclub and bingo hall purchases.
  • Soofer has agreed to plead guilty; Malone faces up to 60 years in prison across 21 counts; Young faces up to 20 years for wire fraud.

“The money went to enrich these fraudsters directly. That's where the taxpayer's money is going — and it's not going to the homeless.”

Bill Essayli, LA prosecutor · NY Post ↗

Lakiya Malone SSG charity workerAlexander Soofer Executive director, Abundant Blessings nonprofitMichael Young Founder, Home at Last nonprofitBill EssayliBill Essayli LA prosecutor, Homeless Fraud and Corruption Task Force

FBI busts LA homeless charity fraud ring with $23M in stolen funds
nypost.com

How it unfolded 2 developments, newest first · click a bar or a number to jump articles

Peak 1 piece in two hours at Sep 16, 8 AM; 2 pieces over 8 days (2 articles) Sep 16, 8 AM — 1 piece · 1 article — Newswires 1Sep 16, 10 AM — 1 piece · 1 article — Newswires 1Sep 16, 12 PM — quietSep 16, 2 PM — quietSep 16, 4 PM — quietSep 16, 6 PM — quietSep 16, 8 PM — quietSep 16, 10 PM — quietSep 17, 12 AM — quietSep 17, 2 AM — quietSep 17, 4 AM — quietSep 17, 6 AM — quietSep 17, 8 AM — quietSep 17, 10 AM — quietSep 17, 12 PM — quietSep 17, 2 PM — quietSep 17, 4 PM — quietSep 17, 6 PM — quietSep 17, 8 PM — quietSep 17, 10 PM — quietSep 18, 12 AM — quietSep 18, 2 AM — quietSep 18, 4 AM — quietSep 18, 6 AM — quietSep 18, 8 AM — quietSep 18, 10 AM — quietSep 18, 12 PM — quietSep 18, 2 PM — quietSep 18, 4 PM — quietSep 18, 6 PM — quietSep 18, 8 PM — quietSep 18, 10 PM — quietSep 19, 12 AM — quietSep 19, 2 AM — quietSep 19, 4 AM — quietSep 19, 6 AM — quietSep 19, 8 AM — quietSep 19, 10 AM — quietSep 19, 12 PM — quietSep 19, 2 PM — quietSep 19, 4 PM — quietSep 19, 6 PM — quietSep 19, 8 PM — quietSep 19, 10 PM — quietSep 20, 12 AM — quietSep 20, 2 AM — quietSep 20, 4 AM — quietSep 20, 6 AM — quietSep 20, 8 AM — quietSep 20, 10 AM — quietSep 20, 12 PM — quietSep 20, 2 PM — quietSep 20, 4 PM — quietSep 20, 6 PM — quietSep 20, 8 PM — quietSep 20, 10 PM — quietSep 21, 12 AM — quietSep 21, 2 AM — quietSep 21, 4 AM — quietSep 21, 6 AM — quietSep 21, 8 AM — quietSep 21, 10 AM — quietSep 21, 12 PM — quietSep 21, 2 PM — quietSep 21, 4 PM — quietSep 21, 6 PM — quietSep 21, 8 PM — quietSep 21, 10 PM — quietSep 22, 12 AM — quietSep 22, 2 AM — quietSep 22, 4 AM — quietSep 22, 6 AM — quietSep 22, 8 AM — quietSep 22, 10 AM — quietSep 22, 12 PM — quietSep 22, 2 PM — quietSep 22, 4 PM — quietSep 22, 6 PM — quietSep 22, 8 PM — quietSep 22, 10 PM — quietYesterday, 12 AM — quietYesterday, 2 AM — quietYesterday, 4 AM — quietYesterday, 6 AM — quietYesterday, 8 AM — quietYesterday, 10 AM — quietYesterday, 12 PM — quietYesterday, 2 PM — quietYesterday, 4 PM — quietYesterday, 6 PM — quietYesterday, 8 PM — quietYesterday, 10 PM — quiet 1–2
Sep 17Sep 18Sep 19Sep 20Sep 21Sep 22now · 12:58 AM ET
  1. 1

    Soofer agrees to plead guilty; Malone faces 21-count indictment

    Alexander Soofer has agreed to plead guilty to one count of wire fraud and one count of money laundering, admitting his role in the bribery scheme with Malone. Malone faces a 21-count federal indictment with potential sentences of up to 20 years per wire fraud count, 10 years per bribery count, and five years on a conspiracy charge.

    “We're working our way up the chain. We're getting to those who are enabling the fraud, and not just the fraudsters themselves.”
    — Bill Essayli, LA prosecutor · source
  2. background

    Young charged with blowing $12M on nightclub, bingo hall, other lavish purchases — Michael Young, founder of Home at Last, allegedly diverted $12 million in taxpayer funds meant for homeless services to personal purchases including a nightclub and bingo hall. He is charged with wire fraud, which carries up to 20 years in federal prison.

  3. 2

    Details emerge of bribery scheme and fabricated homeless clients

    Malone, an SSG worker, allegedly received over $180,000 in bribes and kickbacks from Alexander Soofer, executive director of nonprofit Abundant Blessings, in exchange for priority referrals. The scheme involved creating "ghost" participants who never actually lived at housing sites, with fabricated files including fake welcome letters, forged sign-in sheets, and falsified eligibility forms. Soofer obtained $23 million in public funds, with over $17 million coming from SSG through these fraudulent referrals.

    1. 1 outlet Feds smash multi-million dollar LA homeless scheme as bigwig and ‘charity’ worker dragged from their homes

      first by New York Post, 7d ago

  4. background

    FBI raids homes of Malone, Young, and others in LA homeless fraud sweep — In a coordinated early morning operation, FBI agents with rifles and Kevlar vests arrested Lakiya Malone, 48, at her South Los Angeles home and Michael Young, founder of nonprofit Home at Last, in a sweeping crackdown targeting fraud at LAHSA. Young was taken into custody without incident.