Homeless Funds Hijacked for Tahiti Trips & Nightclubs

Federal authorities have initiated a significant crackdown on alleged fraud schemes that diverted millions of taxpayer dollars intended for Los Angeles' homeless population. Investigations reveal that funds meant to provide housing and services were allegedly used for personal expenses by nonprofit leaders. These alleged expenditures include lavish vacations, high-end nightclubs, luxury vehicles, and even bail-bond costs.

Central to the investigation is Michael Young, accused of misappropriating over $7.5 million through fraudulent billing and sham vendors. He allegedly funded a nightclub and a luxury vacation. Another case involves Alexander Soofer, who admitted to pocketing millions from homelessness aid, and an employee accused of accepting bribes for preferential referrals.

Donye Mitchell, CEO of The Big Blue Umbrella, is also implicated and currently considered a fugitive. Prosecutors allege Mitchell obtained over $1.2 million in grant funding through false pretenses, using it for personal expenses like bail bonds and credit card debt. Officials have vowed to prosecute those involved in defrauding funds allocated for the vulnerable.