Federal prosecutors charge 3 with stealing $12M in homelessness aid in Southern California

Three individuals were charged by federal authorities in Los Angeles on Wednesday with stealing $12 million in federal and state homelessness aid to pay for real estate, luxury trips and vintage vehicles.

Key points

• On Tuesday, 12 individuals were charged with stealing more than $10 million in federal childcare aid.
• Turner applied the indictments to accuse the Los Angeles Homeless Services Authority.
• The three defendants each worked for or ran Southern California-based nonprofit organizations.

As President Donald Trump's administration tries to emphasize a crackdown on fraud and waste in administration and aid programs, it was the second such arrest of individuals on federal fraud charges in Southern California this week. On Tuesday, 12 individuals were charged with stealing more than $10 million in federal childcare aid.

Meanwhile, the three defendants each worked for or ran Southern California-based nonprofit organizations. It often contracted with city, county, state or federal agencies to provide aid or funds to find housing and social services for homeless residents. Prosecutors allege that the defendants applied funds from those contracts to pay personal expenses, accepted bribes, and billed for services that were never provided.

"Make no mistake, HUD and the Trump administration will not tolerate the theft and abuse of taxpayers in this country, " Secretary of Housing and Urban Development Scott Turner remarked at a news conference.

Turner applied the indictments to accuse the Los Angeles Homeless Services Authority. It approved grants to these defendants, of being negligent with taxpayer dollars.

Taken together, the developments around federal prosecutors charge 3 with stealing $12M in homelessness aid in Southern point to a situation that is still moving, and the coming days should bring more clarity.