Staff Reporter
The Los Angeles County government has opened an independent LAHSA investigation after a series of explosive allegations about fraud, waste and abuse surfaced against top executives at the Los Angeles Homeless Services Authority. The move comes as LAist, the nonprofit newsroom that first reported the claims, grapples with a $3.4 million loss in federal funding following a congressional cut to public-media support.
📰 Story Highlights
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LAHSA Investigation: County orders outside probe May 23 after LAist exposé.
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Unreported Allegations: Officials say LAHSA failed to alert the County Fraud Hotline as required.
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$800,000 Settlement: Two former executives claim retaliation for reporting misconduct.
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Email Deletion Claim: Former CEO allegedly sought deletion of Mayor Karen Bass emails; Bass denies knowledge.
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Funding Loss: Congress pulls $3.4 million from public media, shrinking LAist’s budget.
County Steps In After Media Revelations
Greg Hellmold, head of the Office of County Investigations, confirmed in an email to LAist that his office had “initiated a months-long outside investigation” beginning May 23. According to Hellmold, “LAHSA is required to report all allegations [of fraud, waste and abuse] to the County’s Fraud Hotline.”
Yet, Hellmold said, “As of the publication date of LAist’s May 6 article, no allegations matching the article had been reported to the County Fraud Hotline.” He added that his office has since reminded LAHSA’s internal affairs staff “of the need to notify us” and that the matter had been “brought to the attention of the LAHSA Commission Chair.”
The county hired an outside investigator on behalf of its human resources department to review the claims, which were first detailed in demand letters by two former LAHSA executives last year.
Allegations Against Former CEO
The letters accused former CEO Va Lecia Adams Kellum of financial mismanagement, wasteful spending, hiring unqualified associates into powerful jobs, and attempting to destroy public records of her communications with Los Angeles Mayor Karen Bass. They also alleged Adams Kellum received a lap dance from a consultant she had just hired while intoxicated.
Adams Kellum left her post in late July and has not responded to requests for comment. A LAHSA spokesperson previously denied the allegations.
Settlement Reached But No Internal Review
Despite denying wrongdoing, LAHSA in March agreed to pay $800,000 to settle the claims of the two former executives. According to LAist, no internal or external review of the misconduct allegations had been commissioned at that time. Several executives hired by Adams Kellum remain in their positions and did not respond to questions through a LAHSA spokesperson.
LAHSA’s Position on Reporting
Speaking about the broader reporting requirement, LAHSA spokesman Paul Rubenstein said in an email, “Our commitment is to ensure all matters are addressed through the correct and most effective channels, maintaining the integrity of both our internal operations and external relationships.”
Rubenstein argued the agreement with the county requires reporting fraud, waste and abuse to the county hotline, but not personnel investigations, which are handled by LAHSA’s internal human resources staff.
Email Deletion Allegation
One of the most serious accusations came from former IT chief Emily Vaughn Henry, who alleged Adams Kellum asked her “to violate record retention laws and delete two emails that Mayor Karen Bass had sent from her personal email account to Kellum’s LAHSA account.”
LAHSA’s policy at the time required retaining all emails for seven years. Adams Kellum previously told the Los Angeles Times she did not ask for deletion of any mayoral messages. A spokesperson for Mayor Bass told the Times the mayor had “no knowledge” of any deletion request. Bass has not responded to new questions from LAist.
Unclear Record Retention Rules
State law generally requires cities and counties to retain public records for two years. But LAHSA, as a joint powers authority created and funded by both city and county, operates under a different structure and its exact retention obligations are unclear. LAHSA has declined multiple requests from LAist to disclose its record-retention policies.
In late May, LAist filed a records request for all emails between Bass and Adams Kellum. After requesting time extensions, LAHSA ultimately objected, calling the request “unreasonably broad and unduly burdensome.” The agency has not stated how many such emails exist.
LAist Faces Its Own Challenge
Even as it drives watchdog reporting on homelessness, elections, climate and the economy, LAist is confronting a financial crisis. Congress’s decision to claw back public-media funding has left the newsroom with a $3.4 million shortfall over the next two years.
In an appeal to readers, the Editor-in-Chief wrote that LAist has been “doing more hard-hitting watchdog journalism than ever before” but can no longer rely on federal funds to remain paywall-free. The newsroom is urging readers to become monthly members to sustain its independence and continue reporting on high-stakes issues like the LAHSA investigation.
“No matter where you stand on the political spectrum,” the appeal notes, “press freedom is at the core of keeping our nation free and fair.”
The LAHSA investigation underscores how watchdog journalism can expose alleged misconduct inside public agencies and trigger official action. As Los Angeles County reviews claims of fraud, waste and abuse at the Los Angeles Homeless Services Authority, the outcome could reshape oversight of the region’s homelessness response.
At the same time, LAist’s $3.4 million federal funding loss highlights the vulnerability of independent, nonprofit newsrooms that bring such issues to light. Whether the probe confirms or rejects the allegations, its progress will test the accountability of LAHSA leadership — and demonstrate why reader support is essential to sustain transparent reporting on critical public institutions.
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