Federal authorities charge three people with stealing $12 million in homeless aid dollars
Wednesday's arrest comes one day after 12 people were arrested and charged with stealing more than $10 million in federal childcare aid, as the Trump administration's crackdown on fraud and waste in government programs continues.
Federal authorities on Wednesday charged three people with stealing $12 million in federal and state homeless dollars, which prosecutors say were used to buy real estate, luxury vacations and vintage vehicles.
Wednesday's arrest comes one day after 12 people were arrested and charged with stealing more than $10 million in federal childcare aid, as the Trump administration's crackdown on fraud and waste in government programs continues, the Associated Press reported.
The three defendants charged Wednesday worked for or ran Southern California-based homelessness aid nonprofit organizations. These groups often contracted with city, county, state or federal agencies to provide aid or money to find housing and social services for homeless people.
Two defendants, Lakiya Malone, 48, and Michael Young, 46, were arrested Wednesday morning in Los Angeles, and a third defendant, Donye Mitchell, 55, is considered a fugitive. Mitchell is charged with wire fraud.
The defendants allegedly used the funds from those contracts to pay personal expenses and billed for services that were never rendered, according to federal prosecutors.
“Stealing from programs meant to feed, shelter, and support people experiencing homelessness isn’t just a financial crime – it’s an attack on the most vulnerable communities provided for by (these) programs,” Brian D. Harrison, acting inspector general at the Housing and Urban Development Department, said in a statement.