Federal Task Force Formed to Investigate Fraud in L.A.’s Homelessness Response System The LA Alliance for Human Rights Applauds Major Step Toward Accountability; Calls for Court Receivership
LOS ANGELES, CA, April 8, 2025 -Today, the United States Attorney’s Office announced the formation of a federal task force dedicated to investigating and addressing fraud, waste, and abuse within Los Angeles’ homelessness response system. This development marks a pivotal turning point in the fight for transparency and accountability in a system that has long failed the people it is meant to serve.
“The creation of this task force is the direct result of The LA Alliance for Human Rights’ efforts to hold both the City and County of Los Angeles accountable for their failures at home,” said Matthew Donald Umhofer, attorney for the LA Alliance for Human Rights. “As we’ve said, and as the City and County have now conceded, the system is broken. It is broken because of a lack of accountability, and this task force is a definitive step in the right direction.”
The announcement comes on the heels of the Alvarez & Marsal (A&M) audit, which revealed catastrophic levels of mismanagement, echoing the very concerns raised in The LA Alliance’s landmark lawsuit against both the City and County. Despite billions in taxpayer dollars spent over the years, homelessness in Los Angeles continues to rise, while the response system remains fractured, inefficient, and unaccountable.
The new federal task force will investigate the misuse of funds, contract fraud, and civil rights violations tied to programs meant to support L.A.’s most vulnerable residents.
While this is a milestone moment, The LA Alliance believes even bolder intervention is now required.
“Our firm is preparing a motion to place the City’s homelessness response under court receivership,” said Umhofer. “It’s an extraordinary measure, but it’s warranted by the City’s extraordinary failure to reduce homelessness or implement real solutions. It’s time for the court to do what the executive and legislative branches have failed to do for decades.”
The LA Alliance for Human Rights remains steadfast in its mission to end the homelessness crisis through legal action, public pressure, and advocacy for systemic change. Today’s development is a long-overdue response to years of failure—and a critical step toward meaningful reform.
“We are committed to supporting the work of this task force,” Umhofer affirms. “And we will continue fighting to enforce our settlements with the City and the County on behalf of every Angeleno—housed and unhoused—who deserves better.”
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