Dozens of arrests, prosecutions, and convictions have resulted in the social services program fraud, estimated to have cost some $9 billion, found mostly in the Somali immigrant community in Minnesota.
Now new reports this week are confirming a new $130 million scheme involving the “homeless” in Los Angeles has triggered allegations of criminal fraud.
According to a social media statement from Fox, “Four people have been charged by the DOJ in a $130 million homeless fraud scheme. At least $18 million reportedly went toward a home in Greece, a vacation in Tahiti, and a million-dollar nightclub in Los Angeles.”
Scott Turner, the secretary of Housing and Urban Development, said, “One dollar is too much. Any dollar stolen is stolen from the American people.”
NEW: Four people have been charged by the DOJ in a $130 million homeless fraud scheme.
At least $18 million reportedly went toward a home in Greece, a vacation in Tahiti, and a million-dollar nightclub in Los Angeles, @MattFinnFNC reports.
“One dollar is too much. Any dollar… pic.twitter.com/CRa9aMkagV
— Fox News (@FoxNews) September 16, 2026
A report from the New York Post explained the misbehavior allegedly has been going on for some time.
The case now involves, the report said, “a charity worker who allegedly took shocking bribes in exchange for pouring millions of taxpayer dollars into the pockets of a corrupt homeless service bigwig.”
FBI agents raided the South Los Angeles home of Lakiya Malone just after dawn, ordering her to come out. She was handcuffed and taken into custody.
The report said she’s accused of accepting “more than $180,000 in bribes and kickbacks in an illegal homeless services scheme.”
Months earlier, FBI agents grabbed charity leader Alexander Soofer, 42, for allegedly stealing $23 million in public money intended for the needy.
Just as Malone was being arrested, more FBI agents surrounded the home of Michael Young, founder of the nonprofit Home at Last. He allegedly blew $12 million in taxpayer cash meant for the homeless on lavish toys including a bingo hall and a nightclub. He’s now facing charges of wire fraud.
The report explained the Los Angeles prosecutor Bill Essayli confirmed the Homeless Fraud and Corruption Task Force he’s leading “will stop at nothing to root out massive fraud at the lead agency that coordinates housing and social services for the homeless in Los Angeles County.”
The Trump administration already has cited problems in the LA programs for homeless, including alleged corruption and late payments to providers, in suspending federal funds to the project there.
The allegations now involve a “consultant” creating “ghost” participants in housing programs, and the payments for all of that.
Some of the investigation targets already have agreed to plead guilty, the report said.
Another alleged participant was Donye Mitchell, who remained at large.
The Post reported, “More than 70,000 homeless people live in Los Angeles County, with more than 40,000 living in the city of LA. Many reside in the 80 city blocks that comprise the blighted neighborhood known as Skid Row, while others live in encampments along freeways, or under bridges.”
