LOS ANGELES — The newly-appointed U.S. attorney for Los Angeles and its surrounding areas has announced his intent to delve into potential fraud and misuse of funds intended for combating homelessness in Southern California. Bill Essayli, who assumed his role last week, has initiated the Homelessness Fraud and Corruption Task Force. This task force is set to investigate misappropriation of federal tax dollars across seven counties.
“Taxpayers should know where and how their funds are used. If state and local officials cannot ensure proper management and responsibility, we will step in,” Essayli emphasized in a statement from the U.S. Attorney’s Office for the Central District of California.
The statement particularly highlighted Los Angeles County, where recent audits disclosed reckless spending and a lack of transparency within the LA Homeless Services Authority (LAHSA). This government agency is tasked with distributing funds to shelter and provide services to those without homes. Last week, the Los Angeles County Board of Supervisors resolved to reallocate over $300 million in annual funds away from LAHSA, aiming to create a new department focused on homelessness. Subsequently, the head of LAHSA, Va Lecia Adams Kellum, announced her resignation, citing the county’s funding withdrawal decision.
In March, Los Angeles city officials began considering ways to bypass LAHSA by directly contracting with organizations providing services to the homeless. The homelessness crisis in the region is prominently visible, especially in downtown Los Angeles. In areas like the notorious Skid Row, hundreds reside in makeshift shelters lining the streets. Encampments have also begun appearing in suburban areas, often under freeway overpasses. A 2024 survey noted that over 75,000 individuals were without homes on any given night throughout Los Angeles County.
California comprises nearly one-third of the country’s homeless population. The newly formed task force will not only investigate mismanaged federal funds but will also probe “fraud schemes involving stolen private donations meant for support and services for the homeless population,” announced the U.S. Attorney’s Office.
Los Angeles County Supervisor Kathryn Barger expressed support for the task force’s formation, highlighting the necessity for accountability in homelessness spending. She remarked, “I believe this task force will provide the much-needed oversight, helping to rebuild public trust and ensure that resources indeed benefit those in need.”