The fraud busts just keep rolling in, and we're loving it. The latest announcement of just such a bust came in on Wednesday, when the U.S. Attorney's Office for the Central District of California issued a press release describing the charges faced by at least two people accused of a multi-million dollar homeless fraud scheme.
“Today the Department of Justice, with the full force of the federal government, is announcing charges in a major fraud takedown targeting schemes that stole millions from programs meant to house California’s homeless,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “As alleged, Michael Young, through Home at Last, received more than $100 million in taxpayer funds and misappropriated more than $12 million, diverting that money into shell companies, real estate, and even a nightclub and bingo hall. That scheme is now halted in its tracks. My message to every fraudster who steals from the vulnerable is clear: We will track you down, bring charges where the evidence leads, and work relentlessly to reclaim every taxpayer dollar you stole.”
“Today’s arrests mark a major success for our Homelessness Fraud and Corruption Task Force and this Administration’s commitment to protecting taxpayers,” said First Assistant United States Attorney Bill Essayli. “The scale and brazenness of these fraudsters expose a profound failure by the State of California and Los Angeles County to safeguard public funds. Millions intended to house the homeless allegedly financed private real estate, a nightclub, a bingo hall, and personal expenses. Taxpayers deserve accountability. We will follow the money, expose the corruption, and prosecute those who exploit the American people for personal gain.”
The Secretary of Housing and Urban Development (HUD), Scott Turner, had this to say:
Our investigation exposed massive fraud involving homelessness funds in LA.
— Oversight Committee (@GOPoversight) September 16, 2026
Just one day after our hearing, the White House is taking action against fraudsters accused of using the money for bail, inflated salaries, a nightclub, and gambling.
The days of blank checks are over. pic.twitter.com/GQQKhlIGzu
The Secretary said:
While homeless funding tripled in L.A. over the last decade, homelessness has doubled. And when you dig deeper, we found out why. Loss at the largest recipient of homeless funding in the nation is riddled with fraud, waste, and abuse. And those days of blank checks are indeed over. Today, those who broke the law are facing the ultimate consequence: Law and order. The day that these welfare fraud experts are flying on private jets, driving around Beverly Hills in Range Rovers, and doing lavish things is over. No more using government as your personal piggy bank. Like Donye Mitchell, who used federal funds to pay off his bill for domestic violence and assault charges, inflate his salary, make personal credit card payments, and buy gifts for his family. No more gaming the system by creating and submitting fake bids for shell companies to pocket millions and millions of dollars.
Michael Young's organization was called Home at Last. Instead he created a home of last resort, with a nightclub and gambling venture.
What's really amazing about this is the chutzpah these crooks show in their lifestyles: The expensive cars, the fancy vacations, the transfers to shell companies. People keep getting caught, their profligacy keeps getting reported, and yet people keep trying to get away with it, with flashy, highly visible spending.
Secretary Turner continues:
L.A. is called, they say, the City of Angels. But there's nothing angelic about bribery, about stealing money from taxpayers, about lying, about serving our nation's most vulnerable citizens. And while these fraudsters have lined their pockets, American people have been dying in our streets. Enough is enough. If you received one American taxpayer dollar, we expect results. And nothing less. If you fail the taxpayer, if you fail our cities, if you fail our shared mission of ending homelessness, there will be consequences. And we will cut you off as I hope you see today. I want to thank President Trump, Vice President Vance, Director Brady, for your bold leadership with this task force.
A New York Post exclusive lists some of that flashy, visible spending, along with some very satisfying photos of the perp walks. What's more, the three here aren't the only ones being looked at. The DOJ is working up the chain of fraud.
Top Los Angeles prosecutor Bill Essayli said 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.
“We’re working our way up the chain. We’re getting to those who are enabling the fraud, and not just the fraudsters themselves,” he told the California Post. “The money went to enrich these fraudsters directly.”
That's the dumbest part of this whole thing. One would think they would at least squirrel the money away in a Cayman Islands bank account and then skip country to some place with no extradition treaty with the United States, but no, they have to foul their own nests, parading around Beverly Hills in new Range Rovers. That's setting a whole new level of dumb.
It looks a lot like this won't be the last we hear of fraud busts in Los Angeles. And yes: This is precisely what we voted for.
Editor’s Note: The American people overwhelmingly support President Trump’s law and order agenda.
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