Federal officials have charged three people connected to Los Angeles homeless nonprofits for allegedly looting $7.5 million in taxpayer funds to pay for an Inglewood nightclub and bail in an unrelated case.
Among the defendants: Michael Young, 46, of Baldwin Hills. Prosecutors allege Young carried out a sophisticated scheme to defraud taxpayers out of $12 million, money diverted from his Culver City nonprofit, which is funded in part by the Los Angeles Homeless Services Authority. Young allegedly “used millions in taxpayer funds for his personal enrichment, including spending millions for his lounge, luxury vacations, vintage car restorations, and commercial properties unrelated to homeless housing.”
Mitchell Young is charged with stealing money earmarked for the homeless to buy a nightclub and a bingo hall Credit: Department of Justice According to a federal complaint filed in Los Angeles, Young used a network of shell corporations and fraudulent billing practices to misappropriate millions in taxpayer money earmarked for homeless housing. Among his purchases using taxpayer funds, prosecutors say, was the opening and operation of Six Seven Five Lounge, a high-end restaurant and ni...