FBI Agent Sought Elon Musk Probe; $12M Homeless-Aid Case Unveiled | 9/17/26 FIRST LOOK
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What are the details of the $12 million Southern California homeless‑aid fraud case?
Hey everybody, I'm Gabe AI and this is First Look. It's Thursday, September 17th, 2026. We've got a packed show for you today. Federal prosecutors charged three with stealing $12 million in homeless aid in Southern California. New FBI files detail an agent's push to join the Trump probe and another's push to investigate Elon Musk. A village in England votes to secede from the UK over an asylum center plan. Let's dive in. Federal prosecutors charged three with stealing $12 million in homeless aid in Southern California. Three people were charged by federal authorities in Los Angeles on Wednesday with stealing $12 million in federal and state homelessness aid to pay for real estate luxury trips and vintage vehicles.
It was the second such arrest of people on federal fraud charges in Southern California this week, as President Donald Trump's administration tries to emphasize a crackdown on fraud and waste in government and aid programs. On Tuesday, 12 people were charged with stealing more than $10 million in federal child care aid. This is what MAGA voters have been saying for years. The homelessness industrial complex is not a charity. In too many cases, it is a business model. The three defendants each worked for or ran Southern California-based nonprofit organizations,
How did Michael Young use shell companies and luxury trips to misappropriate funds?
which often contracted with city, county, state, or federal agencies to provide aid or money to find housing and social services for homeless people. Prosecutors allege the defendants used funds from those contracts to pay personal expenses, accepted bribes, and billed for services that were never provided. Make no mistake, HUD and the Trump administration will not tolerate the theft and abuse of taxpayers in this country, Secretary of Housing and Urban Development Scott Turner said at a news conference, Turner used the indictments to accuse the Los Angeles Homeless Services Authority, which approved grants to these defendants, of being negligent with taxpayer dollars. Two defendants, Lakia Malone, 48, and Michael Young, 46, were arrested early Wednesday in Los Angeles.
A third defendant charged with wire fraud, Donye Mitchell, 55, is considered a fugitive. Young is the founder of Home at Last, a nonprofit that took in more than $118 million in public funds since 2019 for its stated mission of providing housing and aid to homeless people. Federal prosecutors say Young instead created shell companies that he claimed were independent contractors but were, in fact, controlled by him. This alleged self-dealing allowed Young to be paid both at Home at Last and overbill federal and local authorities. They say Young misused an estimated $7.5 million in taxpayer funds through fake contractors and vendors. Young used the proceeds to take luxury trips to Tahiti and used funds to open a nightclub in Inglewood called the 675 Lounge and other commercial real estate projects, prosecutors allege.
Mitchell is the CEO of Big Blue Umbrella, which was awarded more than $1.2 million from a federally supported nonprofit for housing and mental health care aid. Prosecutors say Mitchell not only misstated his organization's ability to provide such services, but also used money from the award to pay off his credit card debts, give funds to family members, buy video games, and pay legal expenses for an unrelated case. Malone was charged with accepting more than $180,000 in bribes from another homelessness aid nonprofit.
What charges were filed against the third defendant, Donye Mitchell, and how did he spend the money?
Malone allegedly not only accepted bribes, but also placed people in homeless aid programs who weren't homeless. Separately, federal prosecutors announced that a fourth person pleaded guilty to wire fraud and money laundering charges for stealing at least $2 million in homeless aid. Alexander Souffer, the executive director of Abundant Blessings, admitted to working with Malone to bill federal and state authorities for homelessness aid services when there were no participants in his programs. City and county authorities spend roughly $1 billion a year trying to help the homeless population. While significant funds are spent to address the issue, city and county reviews have repeatedly found that the programs lacked appropriate record keeping, audit trails, and documentation.
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Chapters
8 chapters
1
What are the details of the $12 million Southern California homeless‑aid fraud case?
0:04–1:38
2
How did Michael Young use shell companies and luxury trips to misappropriate funds?
1:38–4:10
3
What charges were filed against the third defendant, Donye Mitchell, and how did he spend the money?
4:10–6:30
4
What do the newly released FBI files reveal about an agent’s push to join the Trump‑Russia probe?
6:30–9:02
5
How did an FBI agent propose a criminal investigation into Elon Musk’s request for employee work reports?
9:02–10:42
6
What does Senator Chuck Grassley say about political bias and the “deep state” in these FBI documents?
10:42–12:20
7
Why did the English village of Piddington vote to secede from the United Kingdom over an asylum‑center plan?
12:20–14:04
8
What are the broader implications of the Piddington referendum for UK immigration policy?
14:04–16:17
Speakers
1 identifiedMore from The Rubin Report
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