The U.S. Attorney’s Office for the Central District of California has launched a new task force focused on investigating fraud and misuse of funds allocated to combat homelessness. U.S. Attorney Bill Essayli announced the formation of the Homelessness Fraud and Corruption Task Force, which aims to uncover fraud, waste, and corruption tied to billions of dollars spent on homelessness programs across Southern California, according to the U.S. Attorney’s Office.
The Central District of California covers seven counties, including Los Angeles County, home to more than 75,000 unhoused individuals. According to Essayli, the new task force is a direct response to growing public concern over how homelessness funds have been managed. “Taxpayers deserve answers for where and how their hard-earned money has been spent,” he said.
The task force brings together federal prosecutors and agents from the FBI, the U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD-OIG), and IRS Criminal Investigation. Their goal is to examine how over $24 billion in homelessness funding has been used across the state over the past five years.
The announcement follows a court-ordered audit last month that exposed serious flaws in the way homelessness services are administered in the city and county of Los Angeles. The audit highlighted disorganized services, poor data tracking, and weak financial oversight. The task force will focus on reviewing federal grants, state and local homelessness programs, and private donations. Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation unit noted that his agency will play a key role in tracing how public funds have been used.
“Any exploitation of the homelessness crisis via the theft of funds intended to improve conditions cannot and will not be tolerated,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. Robert Lawler, Special Agent in Charge at HUD-OIG, added that the joint effort reflects a commitment to accountability and protecting vulnerable communities.
