No Halo News · Sourced development
Federal prosecutors alleged Big Blue Umbrella chief misused county-funded grant money
A federal criminal complaint accused chief executive Donye Mitchell of misrepresenting Big Blue Umbrella’s experience and capacity to obtain a grant of more than $1.2 million for housing and mental-health services. Prosecutors alleged that after approximately $315,000 was disbursed, Mitchell used funds for expenses including inflated salary payments, credit-card debt, family transfers, bail costs and video-game charges. Mitchell is charged with wire fraud, was described as a fugitive on September 16 and is presumed innocent unless proven guilty.
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 screening, milestone monitoring and protection of funds intended for vulnerable people needing housing and mental-health care.
Attribution
Who reported or established this
The claims were made by federal prosecutors in a criminal complaint. The grantor, Amity Foundation, was identified by DOJ as having terminated the contract over spending and performance concerns.
Evidence limits
What remains unverified
No Halo has not established that Mitchell or Big Blue Umbrella committed fraud, how much of the disbursed funding was improperly spent, whether services were delivered, or the final outcome of the case.
Right of reply
Organization response
No response from Big Blue Umbrella or Mitchell was located in the consulted material. CalMatters/LAist reported that Mitchell’s legal representation was unknown at publication.
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.