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Fraud & Corruption Status: Alleged

LA Homeless Nonprofit Founder Pleads Not Guilty to Diverting $7.5M in Housing Funds

By AFNS Research Desk · · 1 min read

Downtown Los Angeles skyline
Photo: Eric Polk / Wikimedia Commons, CC BY-SA 4.0 (cropped)

Status: Alleged. Young has pleaded not guilty. These are allegations; he has not been convicted.

What happened

Michael Young, founder of the Los Angeles homeless nonprofit Home At Last, pleaded not guilty to federal charges that he diverted $7.5 million in public homeless-housing money. His group received more than $118 million in public funding (LAist).

Prosecutors say Young ran homeless-housing funds through fake vendors and spent them on a nightclub, vacations and vintage cars.

IRS Criminal Investigation announced the arrests of two defendants employed at LA-area homeless nonprofits on federal charges alleging misuse of taxpayer money (IRS-CI release).

What's next

Trial is set for December 7.

Sources

  1. IRS Criminal Investigation release www.irs.gov
  2. LAist laist.com

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