Feds Smash Multi-Million Dollar LA Homeless Scheme as Bigwig and ‘Charity’ Worker Dragged From Their Homes

A charity worker who allegedly took massive bribes in exchange for pouring millions of taxpayer dollars into the pockets of a corrupt homeless service bigwig was among those busted by the feds in a sweeping operation Wednesday.

In a dramatic early morning raid, FBI agents swarmed the South LA home of Lakiya Malone, taking to bullhorns and yelling for her to “come out!”

As the SSG worker emerged, she was placed in handcuffs by men in Kevlar vests, while others trained rifles on her house.

FBI agents collared Malone, 48, more than seven months after the federal government charged charity leader Alexander Soofer, 42, with stealing $23 million in public funds meant for the needy.

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As Malone was being arrested at her residence, another crew of FBI agents surrounded the house occupied by Michael Young, founder of the nonprofit Home at Last, who allegedly who blew $12 million in taxpayer cash meant for the homeless on lavish toys including a bingo hall and a nightclub.

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She is charged in a 21-count federal indictment that accuses her of taking more than $180,000 in bribes and kickbacks from Soofer, the executive director of the homeless services nonprofit Abundant Blessings, who is separately charged in a massive fraud scheme and has agreed to plead guilty.

In exchange for the bribes and kickbacks, Malone allegedly provided priority referrals of homeless housing participants to Soofer’s organization, including “ghost” participants who never lived at the sites.

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In reality, the payments were tied to the number of referrals Malone sent and to “ghost clients” whose files she helped fabricate with fake welcome letters, forged sign in sheets, and falsified eligibility forms.

Soofer allegedly received more than $17 million from SSG during the scheme, inflated substantially by these fraudulent referrals.

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He further admitted that he obtained $23 million in public money intended to combat homelessness, at least some of which he admits he obtained through fraud, pocketing at least $2 million in taxpayer money for his own personal enrichment and for businesses unrelated to homeless housing.

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Feds say Young paid himself millions of dollars of public funding in prohibited self-dealing transactions and used the money on personal expenses, including a $48,000 trip to Tahiti and more than $140,000 to remodel a vintage Chevrolet Impala automobile.

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Home at Last was a major homeless services provider in LA. The nonprofit took in more than $118 million in public funding for homeless housing services since 2019, according to investigators. The feds believe that Young stole more than $7.5 million through his sham vendor scheme alone.

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