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Civil Procedure

Sep. 17, 2026

Feds widen LA homelessness fraud probe, warn more charges coming

Federal prosecutors announced three new cases in an expanding investigation of Los Angeles homelessness spending, including allegations that a nonprofit founder diverted millions in public funds to shell companies, real estate and a nightclub.

Federal authorities arrested two people and charged a third Wednesday as they widened an investigation into alleged fraud and corruption involving millions of dollars intended to address homelessness in Los Angeles -- and warned that more prosecutions are coming.

The cases include allegations that the founder of a Culver City nonprofit diverted millions in public funds through sham vendors and spent money on commercial real estate, an Inglewood nightclub and personal expenses. Ano...

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