No Halo News · Sourced development
Federal complaint alleges Big Blue Umbrella CEO diverted grant money intended for housing and mental-health services
The U.S. Department of Justice announced a wire-fraud charge against CEO and executive director Donye Mitchell. According to the federal complaint, Big Blue Umbrella obtained more than $1.2 million from county-funded nonprofit Amity Foundation after Mitchell allegedly overstated the charity’s service capacity. Prosecutors allege he later used grant money for personal expenses, including salary payments, bail-bond costs, credit-card debt, family transfers, rent and video-game purchases. Mitchell was described as a fugitive when the charge was announced. A criminal complaint is an allegation, not a finding of guilt.
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 more than $1.2 million awarded for services to vulnerable people and raises questions about grant screening, monitoring and the charity’s reported service capacity.
Attribution
Who reported or established this
The allegations were made by federal prosecutors in a criminal complaint and reported by the U.S. Department of Justice.
Evidence limits
What remains unverified
No Halo has not established that Mitchell or the charity committed fraud, independently verified the alleged spending, or determined how much of the award ultimately supported charitable services.
Right of reply
Organization response
No response from Big Blue Umbrella or Mitchell was located in the consulted material. Amity Foundation reportedly terminated the contract in May 2025 after raising 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 20, 2026. See an error or a later outcome? Submit a correction or right of reply.