Federal Agents Arrest Two in LA Homeless Aid Fraud Scheme

Key points

• At least two people were arrested on September 16, 2026, for fraud and misuse of funds designated for the Los Angeles homeless crisis.
• Lakiya Malone, 48, was arrested in the Westmont area of South Los Angeles after allegedly accepting over $180,000 in bribes to enroll 'ghost participants' who were not actually homeless.
• Michael Young, 46, founder of the Culver City-based nonprofit Home At Last, was arrested for allegedly funneling millions in LAHSA funds toward private vacations and the construction of a nightclub.
• First Assistant U.S. Attorney Bill Essayli described the scheme as a method to divert taxpayer dollars for personal benefit, calling Malone an 'enabler' of fraud.

Background

This incident follows recent local enforcement actions, including the 'Operation Street Sweeper' crackdown in early September that resulted in dozens of arrests for illegal street takeovers. It also aligns with broader federal efforts to combat fraud, such as the voter-fraud crackdown involving a Honduran national in California earlier in the month.

Why it matters

The arrests highlight significant financial mismanagement within the infrastructure designed to support vulnerable populations, raising concerns about the integrity of federal and state funding allocated to combat homelessness in Los Angeles.

What to watch

Federal investigators will likely pursue further charges against other individuals involved in the scheme, while authorities may review the financial records of other nonprofits receiving similar funds to ensure compliance and prevent further misuse.