Feds Charge Three in $12M LA Homeless Fraud

Federal prosecutors charged three people in the Los Angeles area Wednesday with stealing $12 million in federal and state homelessness aid and spending it on real estate, luxury trips and vintage vehicles.

Federal authorities arrested at least two people employed at Los Angeles-area homeless nonprofits, the Los Angeles Times reported. A third defendant is a fugitive and being sought by the FBI.

The charges include wire fraud, bribery and money laundering, according to Fox News.

What the Money Allegedly Bought

Prosecutors say taxpayer money meant for shelter and services went to a Tahiti vacation, an Inglewood nightclub, luxury and vintage cars, a home in Greece, and bail, according to the Justice Department accounts reported by Reason, Fox News and WorldNetDaily.

The Defendants

One nonprofit founder is charged in an alleged $7.5 million scheme in which money allegedly moved through shell companies, The Washington Times reported. Wire reporting identifies the nonprofit as Home At Last, which it says has received more than $118 million in public funds since 2019.

Lakiya Malone faces a 21-count indictment accusing her of taking more than $180,000 in bribes and enrolling participants who did not exist, according to Wire reporting of the Justice Department case.

A third defendant, Alexander Soofer, admitted obtaining $23 million in public funds and pocketing at least $2 million, per the same reporting.