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Essayli testifying at a microphone
U.S. Attorney Bill Essayli announced a new Homelessness Fraud and Corruption Task Force to investigate misuse of funds intended to fight homelessness in seven California counties: Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura.
The task force includes federal prosecutors from the Major Frauds, Public Corruption and Civil Rights, and Civil Fraud sections of the U.S. Attorney’s Office for the Central District of California. Federal partners include the FBI, the Department of Housing and Urban Development’s Inspector General, and the IRS Criminal Investigation division.
Los Angeles County alone has more than 75,000 people experiencing homelessness, including over 45,000 in the city of Los Angeles. The other six counties combined have more than 20,000.
Essayli said voters have supported large funding efforts, but billions in spending have failed to solve the crisis. A recent audit found serious problems with how Los Angeles City and County manage homelessness services, including bad data and weak financial oversight.
“California has spent more than $24 billion over the past five years to address homelessness,” Essayli said. “But officials have been unable to account for all the expenditures and outcomes, and the homeless crisis has only gotten worse. Taxpayers deserve answers.”
Los Angeles officials have started pulling away from LAHSA, the joint city-county agency overseeing homeless services. LAHSA has faced repeated criticism over waste, inefficiency, and lack of transparency (Daily News).
Federal support continues despite the concerns. During the pandemic, $100 million in emergency funds went to Los Angeles County. Last month, HUD awarded more than $200 million to address homelessness in the region.
The new task force will prioritize reviewing federal, state, and local programs that receive federal funding. It will also investigate fraud involving private donations meant to help unhoused people.
“Any exploitation of the homelessness crisis via the theft of funds intended to improve conditions cannot and will not be tolerated,” said Akil Davis of the FBI’s Los Angeles Field Office.
Tyler Hatcher of IRS Criminal Investigation added, “We’re uniquely poised to track any funds granted through federal programs and will help ensure money is spent properly.”
Essayli became U.S. attorney for the Central District of California on April 2 (Daily News). He previously served two terms in the California State Assembly.
Los Angeles Mayor Karen Bass expressed concern about the task force, saying she only learned about it on Tuesday. In a radio interview, she warned against what she called a “fishing expedition.”
“Our purpose is to end homelessness, and especially street homelessness. We do not need to be distracted from our number one mission,” she said.
Bass’s press secretary, Clara Karger, pointed to a 10% drop in street homelessness in 2024 as proof that current efforts are working.
“We’ll continue to focus on saving lives and disrupting the status quo,” Karger said.
To further engage the community and gather important feedback, LA Sanitation and Environment is hosting a second 30-minute virtual public meeting on this proposed ban. This follows our first meeting on March 26, which yielded valuable input. To ensure that those who were unable to attend our initial session have an opportunity to participate, we’ve scheduled a second evening session. We will be presenting the same information shared in the first session, so if you missed it, this is an excellent opportunity to catch up, ask questions, and contribute your feedback.
Event Details:
Date: Wednesday April 16, 2025
Time: 6:00PM to 6:30PM
Location: Zoom (Link to be provided upon registration)
Agenda:
Please note, no decisions will be made during this meeting - it is an opportunity to ensure that your voice is heard.
Your feedback is critical! We encourage your participation, whether you are a consumer, business owner, or someone passionate about sustainability.
To register for the public meeting, please visit https://
For additional information on the City’s plastic reduction strategy and efforts, please visit https://sanitation.lacity.gov/
If you have any questions, feel free to reach out to san_sourcereduction@lacity.org
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