Bill Essayli, the new U.S. attorney for Los Angeles, announced on Tuesday the creation of a special task force aimed at investigating potential fraud and corruption involving local homelessness funds. This initiative comes in response to concerns over how federal funds meant to address homelessness have been managed, particularly in Los Angeles County.
In a press release, Essayli emphasized the need for accountability, stating, “Taxpayers deserve answers for where and how their hard-earned money has been spent.” He indicated that if any federal laws have been violated, there would be consequences, including possible arrests.
The task force will focus on examining millions of dollars allocated to tackle homelessness, especially following a recent audit that uncovered significant flaws in the management of homeless services in Los Angeles. This audit revealed serious issues with oversight and financial accountability at the Los Angeles Homeless Services Authority (LAHSA), which oversees various contracts for homeless services.
The newly formed Homelessness Fraud and Corruption Task Force will investigate crimes related to the misuse of federal tax dollars intended to alleviate homelessness. It will cover the Central District of California, which includes about 20 million residents across seven counties. The task force will also look into fraud schemes involving private donations meant to support the homeless.
The announcement follows a recent vote by the Los Angeles County Board of Supervisors to withdraw over $300 million from LAHSA. Supervisor Kathryn Barger welcomed the task force, stating that accountability in homelessness spending is long overdue. She believes this action aligns with the county’s recent steps to improve oversight after a scathing audit of LAHSA contracts.
The task force will include federal prosecutors from various sections, including Major Frauds and Public Corruption, and will receive assistance from the FBI, the U.S. Department of Housing and Urban Development, and the IRS.
Essayli has been vocal about the issues surrounding homelessness during his time as a state legislator. He has criticized what he calls the “homeless industrial complex” and has argued for stricter enforcement of laws against camping in public spaces. He has previously stated that substantial funds spent on homelessness have not yielded the expected results, suggesting that money has gone to overpriced housing projects and politically connected nonprofits.
This investigation could pose challenges for Mayor Karen Bass, who has made addressing homelessness a key focus of her administration. Her office has reported a 10% reduction in street homelessness, attributed to her Inside Safe program, which moves people off the streets and into hotels and permanent housing.
As the task force begins its work, many hope it will bring much-needed transparency and restore public trust in the management of funds intended for the most vulnerable populations in the community.