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No Halo News · Sourced development

Federal prosecutors allege The Big Blue Umbrella CEO obtained a $1.2 million grant through misrepresentations

A federal complaint charges CEO and executive director Donye “Danya” Mitchell with wire fraud. Prosecutors allege Mitchell overstated the nonprofit's housing experience, staffing and relationship with another provider when applying for Los Angeles County-funded grant money. They further allege that grant funds were used for personal expenses, including increased salary payments, credit-card debt, family transfers, rent, bail-bond costs and PlayStation charges. The claims remain allegations.

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 concerns grant representations and spending controls at a nonprofit selected to provide housing and mental-health services to vulnerable residents. Amity Foundation terminated the contract after about $315,000 had been disbursed.

Attribution

Who reported or established this

Federal prosecutors made the allegations in a criminal complaint summarized by the U.S. Attorney's Office for the Central District of California.

Evidence limits

What remains unverified

No Halo has not established that Mitchell committed wire fraud, that all questioned spending was personal or unauthorized, or whether other officers or directors knew of the alleged conduct. The case has not reached judgment.

Right of reply

Organization response

No response from The Big Blue Umbrella or its governing body 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 17, 2026. See an error or a later outcome? Submit a correction or right of reply.