Video: Federal Agents Arrest Michael Young in Massive Los Angeles Homeless Funds Fraud Crackdown

Federal agents arrested nonprofit founder Michael Young as part of a major Los Angeles crackdown on alleged fraud involving millions of dollars intended to address the city’s homelessness crisis.

Young, 46, a founder of Culver City-based nonprofit Home At Last, is accused of using shell companies and fraudulent billing practices to divert taxpayer money intended for homeless housing and services.

Home At Last received more than $118 million in public funding through contracts with the Los Angeles Homeless Services Authority, the City and County of Los Angeles and the U.S. Department of Housing and Urban Development.

Federal prosecutors allege Young misappropriated more than $7.5 million through sham vendors and used taxpayer money for expenses including luxury travel, commercial properties, vintage car restorations and a high-end Inglewood restaurant and nightclub known as Six Seven Five Lounge.

Authorities allege more than $1 million was spent opening and operating the nightclub, while other funds were allegedly used for a luxury trip to Tahiti.

Young was charged with wire fraud and was arrested along with another defendant as federal authorities announced several separate cases involving alleged corruption and fraud in programs designed to help homeless Californians.

The broader federal crackdown involves allegations that more than $12 million in taxpayer funds were diverted from homelessness programs.

Federal officials said the investigation is continuing as authorities examine how public money intended to provide housing and services for homeless residents was spent.