Homeless Nonprofit Exec Accused of Skimming $12 Million

Michael Young, the founder of the Los Angeles-based homeless services nonprofit Home at Last, has been charged with wire fraud in connection with an alleged multiyear scheme to defraud taxpayers by siphoning $12 million in funds from the nonprofit into his personal accounts. The alleged scheme involved diverting funds that were intended for homeless services and instead using them to finance a lavish lifestyle, including the establishment of an upscale R&B and jazz nightclub named Six Seven Five Lounge and an adjacent bingo hall called House Bingo in Inglewood. Young claimed that House Bingo operated as a nonprofit to raise money for "housing solutions," according to prosecutors. Young was a prominent figure in the L.A. homeless services sector, and over approximately a decade, his organization, Home at Last, received a substantial $118 million in funding from various government entities. These funding sources included the Los Angeles Homeless Services Authority (LAHSA), the city of Los Angeles, the county of Los Angeles, and the U.S. Department of Housing and Urban Development. While some of these funds were reportedly used for legitimate nonprofit activities, prosecutors contend that Young diverted millions through fraudulent self-dealing. The complaint details allegations that Young steered large, multi-million-dollar contracts to companies secretly affiliated with him. He is accused of submitting falsified and misleading documents to LAHSA to create the illusion that these affiliated companies were independent third-party vendors and that the required procurement processes, including obtaining multiple bids, had been followed. To funnel money back to himself, Young allegedly established shell companies that he claimed provided services such as catering and janitorial work for the shelter sites operated by Home at Last. In one specific instance cited by prosecutors, Home at Last utilized $2,089,585 of funds received from LAHSA to pay a company named Bleu Diamond for janitorial services. However, investigators assert that approximately $1.5 million was withdrawn from Bleu Diamond's accounts, suggesting a diversion of funds. The investigation into Young's alleged activities is ongoing, with authorities seeking to recover the misappropriated funds and hold those involved accountable. The case highlights concerns about oversight and accountability in the allocation of taxpayer dollars intended for critical social services like homelessness prevention and support.