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U.S. Attorney Bill Essayli has announced the creation of the Homelessness Fraud and Corruption Task Force, a new federal initiative aimed at investigating misuse of funds allocated to combat homelessness in Southern California.
The task force was also highlighted in a Truth Social post by President Donald Trump on Sunday.
The task force will focus on identifying and prosecuting instances of fraud, waste, abuse and corruption related to homelessness programs within the Central District of California, which encompasses Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura counties. These areas collectively house approximately 20 million residents.
“California has spent more than $24 billion over the past five years to address homelessness,” Essayli stated.
“But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers for where and how their hard-earned money has been spent. If state and local officials cannot provide proper oversight and accountability, we will do it for them. If we discover any federal laws were violated, we will make arrests,” he added.
The task force will include federal prosecutors from the Major Frauds Section, the Public Corruption and Civil Rights Section and the Civil Division’s Civil Fraud Section of the U.S. Attorney’s Office. They will collaborate with the FBI, the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and IRS Criminal Investigation.
Los Angeles County alone reports a homeless population exceeding 75,000 individuals, with more than 45,000 residing within the city limits. Despite significant financial investments and voter-approved initiatives, homelessness remains a persistent issue in the region.
The task force will prioritize reviewing programs that receive federal grants and funding, ensuring that taxpayer and donor funds are utilized appropriately. It will also investigate schemes involving the theft of private donations intended to support homeless services.
“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. “The FBI is proud to join the newly formed task force and will continue to investigate fraudulent schemes and corrupt officials who misappropriate government funding or private donations intended to aid those in need.”