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Federal complaint alleges Big Blue Umbrella executive misused a homelessness grant

The Justice Department announced a wire-fraud charge against CEO and Executive Director Donye Mitchell, alleging that The Big Blue Umbrella obtained more than $1.2 million from Amity Foundation after misrepresenting its experience, partnerships and proposed services. Prosecutors allege that Mitchell subsequently misrepresented staffing and spending and used grant money for personal expenses. DOJ reported that Amity terminated the contract in May 2025 after disbursing about $315,000 and that Mitchell was considered a fugitive on September 16.

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 criminal complaint provides a major follow-up to Amity Foundation's earlier contract termination and may affect confidence in the nonprofit's representations, controls and capacity to deliver funded services.

Attribution

Who reported or established this

The allegations and fugitive status were reported by the U.S. Department of Justice based on a federal criminal complaint.

Evidence limits

What remains unverified

No Halo has not established that Mitchell committed wire fraud, determined how much of the grant benefited clients or verified whether other officers or directors participated in or knew of the alleged conduct. The charge remains unresolved.

Right of reply

Organization response

No response from The Big Blue Umbrella or its governing board was located in the consulted material.

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 16, 2026. See an error or a later outcome? Submit a correction or right of reply.