Saturday, April 19, 2025

Feds launch task force to investigate fraud and corruption in Southern California homeless funds

U.S. Attorney Bill Essayli on Tuesday announced the creation of a federal task force to investigate fraud, waste, abuse and corruption involving billions of dollars allocated to address homelessness in Southern California.

The U.S. Attorney’s Office specifically highlighted Los Angeles County in the news release, saying homelessness remains an issue in the county despite billions of dollars set aside and voter-approved initiatives to tackle the issue.

“Officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers for where and how their hard-earned money has been spent,” Essayli said in a statement. “If state and local officials cannot provide proper oversight and accountability, we will do it for them. If we discover any federal laws were violated, we will make arrests.”

The Homelessness Fraud and Corruption Task Force will “investigate crimes related to the misappropriation of federal tax dollars intended to alleviate homelessness” in the Central District of California, which covers an estimated 20 million people across seven counties.

The task force will also investigate “fraud schemes involving the theft of private donations intended to provide support and services for the homeless population,” according to the U.S. Attorney’s office.

The announcement follows a court-ordered audit released last month that found the city and county of Los Angeles had “disjointed” homelessness services, poor data integration, and a lack of financial controls for monitoring contracts, according to the news release.

In February, Gov Gavin Newsom announced a new state website to track funds to combat homelessness and show how each county is doing to combat homelessness, housing, and behavioral health needs.

The website also shows which counties comply with the state’s expectations of these needs.

In Los Angeles County, the website shows Artesia, Carson, Commerce, Compton, Hidden Hills, Irwindale, La Habra Heights, La Mirada, Palos Verdes Estates, San Marino, Vernon, West Covina, and Norwalk are “out of compliance.”

“No one in our nation should be without a place to call home. As we continue to support our communities in addressing homelessness, we expect fast results, not excuses. While we are pleased by the progress many communities have made to address the homelessness crisis, there is more work to do,” Newsom said in a statement.

Leave a Reply

Your email address will not be published. Required fields are marked *