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Nonprofit Founder Arrested After Alleged $7.5M Homeless Funds Fraud

By Drooid · Sep 17, 2026, 11:43 PM UTC · How we work

Summary

Story summary

Michael Young (nonprofit founder) was arrested by U.S. federal agents for wire fraud in Los Angeles.
He allegedly siphoned more than $7.5 million from $118 million homelessness funding.
He spent over $1 million to open the Six Seven Five Lounge nightclub.
Lakiya Malone was arrested for accepting over $180,000 in bribes and kickbacks.
Donye “Danya” Mitchell, CEO of The Big Blue Umbrella, remains a fugitive charged with $1.2 million fraud.

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Story summary

Michael Young (nonprofit founder) was arrested by U.S. federal agents for wire fraud in Los Angeles.
He allegedly siphoned more than $7.5 million from $118 million homelessness funding.
He spent over $1 million to open the Six Seven Five Lounge nightclub.
Lakiya Malone was arrested for accepting over $180,000 in bribes and kickbacks.
Donye “Danya” Mitchell, CEO of The Big Blue Umbrella, remains a fugitive charged with $1.2 million fraud.