A nonprofit CEO accused of misusing grant funds meant to house and feed homeless Angelenos pleaded not guilty Tuesday to federal fraud charges; his nonprofit had been awarded more than $1.2 million, while prosecutors allege grant money was used for his rent, bail bond and even PlayStation charges. Donye “Danya” Mitchell, who runs The Big Blue Umbrella, a Los Angeles-based nonprofit, is now facing trial in Los Angeles federal court on wire fraud, aggravated identity theft and money laundering counts.
Mitchell, identified as 56 years old by mynewsla.com, is the chief executive of The Big Blue Umbrella, a nonprofit that purportedly operated out of offices in Lakewood and Murrieta. A separate account from the Los Angeles Times identified him as 55 when federal authorities arrested him in September. The nonprofit claimed to provide emergency housing services, emergency food banks, job placements, transportation to medical appointments, life-skills counseling and high school and college programs, according to mynewsla.com.
Federal prosecutors say grant money meant to help vulnerable people with housing and mental health care instead allegedly helped Mitchell pay his personal rent and post bail. Per the same report, Mitchell is accused of securing more than $1.2 million in grant awards by misrepresenting his organization's services, and he had applied through Epidaurus for more than $9 million back in January 2024, prosecutors allege.
Grant Money Allegedly Funded Bail Bond, Credit Cards and Gaming Charges
The Big Blue Umbrella received its grant award from Epidaurus, a separate nonprofit funded by the county that does business as Amity Foundation. Prosecutors allege Mitchell used the grant funds for a range of personal expenses: paying a bail bondsman for his bond, covering amounts due on his personal credit card, making transfers to family members and friends, paying rent for his home, and paying PlayStation charges, the outlet's report states.
One of those alleged uses ties directly to Mitchell's own legal trouble. Prosecutors say he used grant funding to pay a bail bondsman for his release following an October 2024 arrest for domestic violence and assault, according to mynewsla.com's reporting.
Amity Foundation Cut Ties After $315,000
Amity Foundation did not disburse the entire grant award, which exceeded $1.2 million, before pulling out. The organization terminated its contract with The Big Blue Umbrella in May 2025 after disbursing about $315,000, as reported by Patch, citing concerns about spending and unmet milestones.
Mitchell's case did not emerge in isolation. Federal authorities arrested three people employed at Los Angeles-area homeless nonprofits as part of a broader crackdown, the Los Angeles Times reported in September, with a related case alleging that taxpayer money intended for homeless services was instead used to finance a nightclub. “The taxpayers did not sign up to fund this nightclub,” the outlet quoted officials saying in that separate matter.
HUD Watchdog Calls Alleged Scheme an Attack on Vulnerable Communities
A HUD inspector general official framed the alleged conduct in stark terms, saying it amounts to an attack on the most vulnerable communities served by HUD programs, according to mynewsla.com.
Mitchell's trial was set for Dec. 22, mynewsla.com reported. The case adds to a pattern of federal scrutiny over homelessness-related grant spending; in a separate matter out of New Mexico, a former Santa Fe nonprofit executive agreed to pay $735,000 to resolve HUD grant-fraud allegations, according to a Justice Department release that said HUD OIG remains committed to pursuing people alleged to have personally benefited from federal homelessness-support funds.
