The Department of Justice will form a task force to investigate “fraud, waste, abuse and corruption,” including the use of funds to combat homelessness in Southern California, the agency announced Tuesday.
The Homeless Fraud and Corruption Task Force includes federal prosecutors in the main fraud section of the US Lawyer’s Office in the Central District of California, the Public Corruption and Civil Rights section, and the civil fraud section of the civil sector, the DOJ said in a news release.
The task force will investigate the use of funds in counties within the jurisdiction of the Central District of California, including Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara and Ventura counties.
“California has spent more than $24 billion over the past five years dealing with homelessness,” Bill Essay said. “But the authorities are unable to explain all the spending and outcomes, and the homeless crisis is only getting worse. Taxpayers deserve an answer as to where and how their hard-earned money was spent.
The essay was sworn in April 2 as a US lawyer for the Central District of California, following an appointment by Attorney General Pam Bondy. Prior to that, he was a two-time elected member of the state legislature.
The survey includes how money was used from voter-approved voting initiatives that fund homeless programs and services.
“Despite the billions spent on voter-approved initiatives and addressing the issue, homelessness remains a crisis, especially in Los Angeles County,” the DOJ said in the announcement. “A court order audit last month revealed that the homeless services provided by the city and county of Los Angeles are “splitting,” with “low data quality and integration,” and no financial management to monitor compliance and performance contracts. ”
Last week, the Los Angeles County Board of Supervisors voted to effectively withdraw from the Los Angeles Homeless Services Agency (LAHSA). The city and county have sent tax revenues to agencies to manage their efforts to end homelessness.
The LA County Board of Supervisors votes to retrieve taxes to manage it on its own after the audit discovers that billions of dollars of funds are inadequate. Conan Nolan reports NBC4 News at 5pm on March 28, 2025.
The county’s move comes after an audit showed a lack of transparency in financial accounting for the services offered. The county board voted to establish the county’s own homeless services division. This is a decision fulfilled by opposition from city officials in the city of Los Angeles.
The county’s votes increased countywide sales tax by a quarter, providing additional funding for the anti-homeless program. The increase was approved by voters in November. This is a passing of Measure A, a semi-cent sales tax for homeless programs that will be permanently effective. The tax has been replaced with a previous voter-approved quarterly-centric sales tax that was due to expire in 2027.
The NBCLA reached out to state and local governments for comment.
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