Home At Last Founder Charged Over Homeless Funds and Inglewood Nightclub

LOS ANGELES — The founder of Home At Last faces a federal wire-fraud charge alleging that public homelessness funding helped finance an Inglewood nightclub, while local agencies have terminated contracts and worked to transfer residents and services to other providers.

Michael Young, 46, of Baldwin Hills, was arrested Sept. 16 on a criminal complaint, according to the U.S. attorney’s office. Prosecutors allege more than $7.5 million was diverted through a sham-vendor scheme. Young is presumed innocent, and the allegations must be proved in court.

The case concerns how money intended for homeless housing was spent. It also follows the breakdown of contracts that supported people already living in Home At Last’s interim housing, making continuity of care a separate issue from the criminal prosecution.

Prosecutors allege sham vendors concealed spending

Federal authorities say the Culver City-based nonprofit received more than $118 million from public agencies, including over $75 million through the Los Angeles Homeless Services Authority. The alleged diversion represents part of that funding; the announcement does not allege that all money paid to the provider was stolen.

Prosecutors allege Young controlled vendors presented as independent businesses and used false bids, forged signatures and fraudulent invoices to conceal transactions. They say more than $1 million supported the Six Seven Five Lounge in Inglewood, with other money spent on vacations, car restorations and commercial properties unrelated to homeless housing.

Wire fraud carries a statutory maximum sentence of 20 years. That maximum is not a sentence imposed on Young. The FBI, IRS Criminal Investigation and the Department of Housing and Urban Development’s inspector general are investigating the case.

Housing disruptions preceded the arrest

LAHSA’s June 23 announcement said Home At Last notified the agency May 21 that it would stop operating two interim housing sites within four weeks. The provider cited delayed reimbursements, according to LAHSA, which disputed that explanation.

The agency said it had advanced nearly $2.8 million for the fiscal year and that substantial advances remained unspent. Its commission voted unanimously to terminate the two sites’ contracts for cause. A 30-day notice set termination for July 22 and made the provider ineligible for LAHSA funding opportunities for five years.

LAHSA said it offered all 181 affected participants another interim placement or a different housing option, including family reunification. Most received another form of housing, the agency said. That account does not establish that all participants obtained permanent housing or remained housed afterward.

The agency also said it was withholding payments while seeking supporting expenditure documents. An IRS letter received in May advised that cash had been seized from an address linked to Young and that LAHSA might be entitled to make a claim.

County terminated additional agreements

On Sept. 25, the county Department of Homeless Services and Housing announced another contract termination following fiscal and administrative concerns. Its contract-monitoring unit began a review in August and referred its findings to the county auditor-controller for further examination.

The action included a supportive housing master agreement and an interim housing stabilization work order. The county said Home At Last had operated a stabilization site under the agreement since 2021, initially through Housing for Health.

Two additional work orders, previously administered by LAHSA with county funding, also ended. Those covered winter shelter services and intensive case management associated with time-limited housing subsidies. The county said it was coordinating transitions to limit disruptions for people receiving care.

Department Director Sarah Mahin said oversight and continuity of services were both priorities. The county pledged enhanced monitoring of contractors, but its announcement did not provide a completed assessment of every affected resident’s subsequent housing situation.

Asset recovery and resident outcomes remain separate questions

In its Sept. 16 response, LAHSA said it cooperated with federal investigators and continued pursuing the seized cash. The agency said the announced charges involved outside providers and contractors and did not implicate its employees.

LAHSA said recovered taxpayer funds should return to housing services. Its statement did not identify a final recovery amount or a completed distribution. Recovering money depends on a different process from proving the criminal allegations and ensuring former clients receive services.

For residents whose housing depended on these contracts, accountability includes a place to stay and continued access to support. The public record establishes enforcement actions and promised transitions. The remaining measures are the case’s outcome, money actually recovered and whether affected residents achieve lasting housing stability.