Federal prosecutors have uncovered what they describe as a major fraud and corruption case involving Los Angeles homeless services funding. The investigation centers on nonprofit executives accused of diverting millions of dollars in public money meant for homelessness programs.
Michael Young, 46, a founder of the Culver City-based nonprofit Home At Last, was arrested on federal charges. Prosecutors say he received more than $118 million in public funds from the Los Angeles Homeless Services Authority, the city and county of Los Angeles, and the federal government, including more than $75 million from LAHSA alone. They allege he used shell companies and fake bids to misappropriate at least $7.5 million, and possibly more than $12 million.
Authorities say the money was spent on personal and luxury expenses, including more than $1 million to open the Six Seven Five Lounge, a restaurant and nightclub in Inglewood. Prosecutors also say the funds went toward vintage car restoration, luxury vacations and the purchase of personal real estate. Separate defendants were also accused of misuse involving grant money and false billing tied to homeless services.
The case has drawn added attention because one Los Angeles City Council member accused of steering funding to the nonprofits remains involved in reviewing the budget. For Korean-American readers and others following city homelessness spending, the case underscores continuing scrutiny of how public money is administered through LAHSA and related programs.
