Two Arrested in LA Homelessness Fund Fraud Sweep

Federal authorities arrested two individuals and are seeking a third in a Los Angeles corruption sweep targeting funds meant to address homelessness, alleging more than $12 million in taxpayer money was diverted for personal use. The arrests, announced Wednesday, September 16, 2026, mark a significant enforcement action in a region grappling with a persistent housing crisis. Michael Young, 46, founder of the Culver City-based nonprofit Home At Last, and Lakiya Malone, 48, an employee of Special Service for Groups, were taken into custody. Prosecutors allege Young orchestrated a multiyear scheme to divert over $7.5 million in public funds, using shell corporations and fraudulent billing. Among the alleged misuses, more than $1 million was spent to open and operate the Six Seven Five Lounge, a high-end restaurant and nightclub in Inglewood, along with purchases of commercial real estate and a bingo hall. Malone faces a 21-count indictment accusing her of accepting over $180,000 in bribes and kickbacks from Alexander Soofer, the former executive director of another nonprofit, Abundant Blessings.