Donye Mitchell to Face Federal Charges in Fraud Case
The nonprofit executive faces federal charges for wire fraud, identity theft, and money laundering in a grant money scheme.
Updated on Oct. 27, 2026 in Financial Crime
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Donye Mitchell, the CEO of The Big Blue Umbrella, is scheduled to appear in federal court on Tuesday to face charges of wire fraud, identity theft, and money laundering. Prosecutors allege he misappropriated over $1.2 million in grant funds obtained under false pretenses.
Why it matters
The case highlights concerns regarding the oversight of grant funding intended for emergency housing, food, and job placement services. Mitchell allegedly funneled these funds toward personal expenses, including rent and credit card debts, rather than providing the promised community support.
Donye Mitchell is set for his federal arraignment this Tuesday regarding charges of wire fraud, identity theft, and money laundering. The defendant previously faced a separate arrest in October 2024 for domestic violence and assault charges.
The players
Donye Mitchell
He is the chief executive officer of the nonprofit organization The Big Blue Umbrella.
Epidaurus
Also known as the Amity Foundation, this organization provided grant money to Mitchell's nonprofit.
The Big Blue Umbrella
This nonprofit organization purportedly operated offices in Lakewood and Murrieta.
The details
Mitchell reportedly lied about the services his nonprofit, The Big Blue Umbrella, provided to secure grants from Epidaurus, which does business as Amity Foundation. He is accused of transferring the misappropriated grant money to friends and family members while also using the capital to cover personal expenses like bail bonds and rent.
Timeline
In January 2024, Donye Mitchell applied for over $9 million in grant funding.
Mitchell was arrested in October 2024 for domestic violence and assault.
The federal arraignment for Mitchell is scheduled for Tuesday.
Legal Context
This case follows a pattern of heightened federal scrutiny into the misappropriation of grant funds intended for social service providers. It reflects ongoing efforts by the justice system to curb financial exploitation within organizations that claim to offer emergency housing and counseling.
The charges against a nonprofit leader underscore the risks of grant fraud for local service delivery and community trust. Residents in Lakewood and Murrieta who rely on social services should be aware of the ongoing investigation into the legitimacy of community support organizations.
The takeaway
This case serves as a reminder for donors and stakeholders to perform due diligence before supporting organizations that claim to provide essential social services. Ensuring transparency in how grant funds are allocated is critical to maintaining the integrity of community support systems.
Further reading
For more background on similar regional prosecutions, see Financial Crime.
Source note: This article includes information reported by My News LA.
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