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Federal prosecutors allege Big Blue Umbrella executive obtained homelessness grant money through misrepresentations

A federal criminal complaint charges CEO and executive director Donye Mitchell with wire fraud. Prosecutors allege Mitchell obtained a grant award of more than $1.2 million by misrepresenting Big Blue Umbrella’s experience and relationships, then used disbursed funds for expenses including increased salary payments, bail-bond costs, credit-card debt, family transfers, rent and PlayStation charges. The U.S. Attorney’s Office reported that Mitchell was considered a fugitive as of September 16. The allegations have not been adjudicated.

Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.

Donor relevance

Why this matters

The case raises questions about grant verification, executive oversight and whether funds intended for housing and mental-health services reached vulnerable beneficiaries.

Attribution

Who reported or established this

The claims were made by federal prosecutors in a criminal complaint summarized by the U.S. Attorney’s Office.

Evidence limits

What remains unverified

No Halo has not independently established the alleged misrepresentations or spending, confirmed the amount ultimately received by the charity or determined Mitchell’s guilt. A criminal complaint is an allegation.

Right of reply

Organization response

No response from Big Blue Umbrella or its board was located in the consulted material. The source says grantmaker Amity Foundation terminated the contract in May 2025 over concerns about spending representations and missed milestones.

Classification

How No Halo records this event

Event type: Complaint. Current state: Open. No Halo preserves the current procedural state rather than treating every mention as a finding.

Published September 16, 2026 · Last verified September 18, 2026. See an error or a later outcome? Submit a correction or right of reply.