A sign warning unlicensed contractors in Altadena after the Eaton Fire.
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Erin Stone
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LAist
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Topline:
More than a third of people impacted by a disaster report experiencing fraud, according to a survey commissioned by the American Institute of CPAs a national organization of accountants. As hurricanes, wildfires, and flooding become more frequent and severe, the disaster economy has ballooned — and with it, opportunities to take advantage of people in crisis.
Fraud and recovery: Post-disaster scams come in many forms. In some cases, contractors ask for money up front and then disappear. In others, they may tear down walls damaged by floodwaters or fires, collect a portion of their fees, and never return to rebuild the home. But in the case of more sophisticated actors, they use insurance companies and the legal system to put homeowners in a bind.
Red flags: Look out for companies that fail to provide detailed estimates of the damage or a scope of work before starting. Door-to-door canvassing after a natural disaster, though common, can also be a telltale sign of predatory behavior aimed at exploiting vulnerable homeowners. Any easy way to protect yourself is to confirm with your insurance company whether they have a track record with the contractor and will cover the repairs.
Read on . . . to learn about one company with a shaky track record that is operating in the areas of the Palisades and Eaton fires.
Three days after the Mountain Fire tore through the hillsides of Camarillo in Southern California last November, Craig Crosby was at home assessing the damage when he spotted two men canvassing the neighborhood. Crosby’s house was still standing, but the blaze had burned down the northwest corner of the structure and his avocado orchard. Every surface was covered in ash and soot. The windows had melted, the doors were scorched, and everything reeked of smoke.
The men eventually made it to his doorstep and introduced themselves as franchise employees of the national restoration company Servpro. They told him they could help with the cleanup, and that they worked with all major insurance firms, including AAA Insurance, where he held a policy.
Crosby, who is a consumer advocate and founder of the Counterfeit Report, was wary. He told them he was not ready to authorize repairs, but that they could assess the damage. When they handed him a one-page access form, he scrawled a few amendments: his insurance adjuster’s information and a line clarifying that he only wanted “evaluation, recommendation, documentation, and inspection.”
“I like to memorialize exactly what I say,” Crosby later recalled. “And it struck me a little unusual that they didn’t have a problem with me changing a corporate form.”
Over the next 10 days, the company sent more than a dozen workers to his house.
They moved furniture, wiped the walls, and dusted surfaces. Along the way, they copied a AAA Insurance representative on emails, leading Crosby to believe that his policy would cover the work. But Crosby started to notice they were cleaning surfaces that probably needed to be ripped out and tossed.
Then they began causing new problems.
As they tore out insulation in the attic, they damaged HVAC pipes and vents. (An HVAC technician would later deem the system inoperable due to the damage.) They also dinged the garage door, stained carpeting, and broke an attic access door.
When Crosby called his insurance adjuster to complain about the company’s shoddy workmanship and excessive billing, he was shocked to learn that AAA had never approved the work.
An authorization form signed by Craig Crosby shows he clarified that he only wanted “evaluation, recommendation, documentation, and inspection.” Craig Crosby / Grist
In fact, they told him One Silver Serve LLC, the franchise that had approached Crosby, was on their internal blacklist.
When he told the cleaning company it would cost roughly $16,000 to replace the HVAC system, they initially offered in writing to cover the cost if he signed a liability waiver. Once he did, the company reversed course. Instead of paying, its lawyer told him he owed the company more than $62,000 for their services.
Then, on Valentine’s Day, the company escalated it further.
Its lawyer filed a mechanic’s lien — a legal claim against a property for unpaid work — on Crosby’s home. He couldn’t believe it. He’d never paid a credit card bill late, let alone had a lien on his property.
“I pay all my bills a month in advance,” he said. “That’s how conscious I am not to jeopardize my reputation and standing.”
A sign in Altadena, California warns people whose homes burned in the Eaton Fire in January of being approached by unlicensed contractors.
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David McNew
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One Silver Serve LLC, based in Encino, is one of Servpro’s roughly 2,300 independently owned franchises. It benefits from Servpro’s national reputation, but operates with little direct oversight from the parent company. The quality of work, billing practices, and ethical standards are entirely left to the local franchise.
About a dozen of Crosby’s neighbors had similar experiences with One Silver Serve after the Mountain Fire, according to county records and court filings. Each was approached by workers at their doorstep in the days after the fire, told insurance would cover costs, signed an authorization form, and later received exorbitant bills for cleaning.
Some, like Robert Perez, a funeral director down the street, received notice of a mechanic’s lien for roughly $58,000. When Crosby, Perez, and others didn’t cough up the money, One Silver Serve sued them in Ventura County Superior Court.
Crosby’s insurance adjuster eventually declared the home a total loss from the fire — a determination that restoration professionals typically identify during their initial assessment, before cleaning commenced. Crosby has since filed counterclaims for fraud, breach of contract, property damage and elder abuse.
An attorney for One Silver Serve declined to comment. Kim Brooks, director of communications for Servpro, said the company is aware of the lawsuit against Crosby and does not comment on pending litigation.
Craig Crosby/Grist
A growing problem
More than a third of people affected by a disaster report experiencing fraud, according to a survey commissioned by the American Institute of CPAs, a national organization of accountants. About 8% said they experienced contractor fraud, and another 10% reported vendor fraud, which involves improper payments to real or fictitious businesses.
Post-disaster scams come in many forms. In some cases, contractors ask for money up front and then disappear. In others, they may tear down walls damaged by floodwaters or fires, collect a portion of their fees, and never return to rebuild the home. But in the case of more sophisticated actors, they use insurance companies and the legal system to put homeowners in a bind.
“Any component that involves people who have been impacted and are vulnerable, people will try to find a way to capitalize,” said Niambi Tillman, a regional director with the nonprofit National Insurance Crime Bureau. “You’ll see people price gouging or inflated costs with excessive billing, trying to convince people to make decisions very quickly and cough up money on the front end, and then not delivering the services.”
As hurricanes, wildfires, and flooding become more frequent and severe, the disaster economy has ballooned — and with it, opportunities to take advantage of people in crisis. Disaster survivors who have already lost homes, and in some cases, loved ones, are left further traumatized and financially strained.
The National Insurance Crime Bureau estimates that upward of 10% of post-disaster spending is lost to scams every year. With nearly $183 billion in infrastructure losses from weather-related disasters in 2024, contractor fraud has become a lucrative business.
And its consequences ripple throughout the economy. The rising cost of recovery, fueled in part by fraudulent activity, then causes insurance premiums to rise and insurers to reduce coverage or leave a region altogether. According to the National Insurance Crime Bureau, fraud, particularly as perpetrated by contractors and other third parties, is “a threat to the stability of the insurance market.” USI Insurance Services, one of the largest insurance brokerage and consulting firms in the country, estimates that fraud is responsible for $900 more in premiums per policyholder.
One of Crosby’s neighbors, who asked for her name to be withheld, was not home when the Mountain Fire ripped through her neighborhood and burned part of her house. One Silver Serve charged more than $100,000 to clean the property — an amount she never agreed to — and put a mechanic’s lien on her house when she didn’t pay. Since the fire, she’s rented an apartment in the nearby city of Oxnard and has been coordinating repairs with a licensed contractor. For now, she’s focused on rebuilding and plans to deal with the lien afterward.
“In my whole 82-year-old life, I have never come across such absolute crooks,” she said. “Here you are, a devastating thing that your house … has burned, and they come and do this. It’s horrible. Right now, I don’t know how to get the lien off of my house.”
In the aftermath of wildfires, hurricanes, and flooding, state attorneys general, the Federal Emergency Management Agency, and local law enforcement officials have taken to warning homeowners to be on the lookout for scammers.
Servpro franchises aren’t the only offenders in post-disaster contractor fraud. But Servpro’s national reputation and professional branding lend an air of credibility to franchisees’ operations, making them harder to scrutinize.
Servpro was founded in 1967 as a small painting operation in Sacramento, California. Within two years, the company launched as a franchise cleaning business and began expanding its operations. By 2000, it had 1,000 franchises, and by the end of the decade, it made more than a billion dollars in revenue. Today, the company has a network of over 2,300 franchises and is a multibillion-dollar organization that can serve 97% of the country’s ZIP codes within two hours.
Once franchisees are approved, they receive classroom and hands-on training at the company’s headquarters in Gallatin, Tenn. The company requires that franchisees use Servpro-branded equipment and professional cleaning products, paint any service vehicles with the company’s green logo and decals, and wear its black and green uniforms.
“Servpro has a proprietary brand identity guide that establishes and maintains a consistent professional customer-facing image for brand awareness and professionalism,” the company’s website notes.
But it’s unclear if Servpro has processes in place to hold franchise owners accountable for questionable practices. Across the country, there are hundreds of complaints with the Better Business Bureau and other consumer websites about price gouging, overcharging and engaging in intimidation tactics by Servpro franchises. For instance, the Better Business Bureau profile for Servpro Northeast Salem in Oregon has multiple complaints of fraudulent liens placed on homes after the company damaged property and overcharged for work. Similar complaints exist for franchises in Naperville, Ill.; Douglasville, Ga.; and Marietta, Ga.
In 2023, when a major storm blew through central California and dumped nearly 5 inches of rain over 24 hours, the floodwaters damaged Wee Shack, a family-run burger restaurant in seaside Morro Bay. The restaurant’s owner, Hoai Duc Ngo, hired Servpro of Morro Bay/King City for water and mold remediation.
The company required him to sign a contract to receive an estimate and later told him the work would cost about $130,000 — nearly equal to his entire insurance coverage. When he refused to pay the charges, the company filed a mechanic’s lien against the property and sued him, despite the fact that they hadn’t provided an estimate up front, had done minimal restoration work, and had caused additional property damage. Ngo later had the work completed for about $15,000, and filed counterclaims against the company for negligence, misrepresentation, fraud and concealment, among other charges.
Owners, volunteers and community members clean up mud and debris at a coffee shop in Marshall, North Carolina, after Hurricane Helene in 2024.
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Jabin Botsford
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The Washington Post via Getty Images
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Some franchises have faced regulatory action.
After Hurricane Florence hit North Carolina in 2018, Servpro of Boise, an Idaho-based franchise, sent workers to the region for cleanup. They approached residents of an apartment building that had suffered water damage, conducted cleanup and then filed a lien and a lawsuit against the condo owners for $100,000 when they refused to pay what they saw as an exorbitant bill. The North Carolina attorney general’s office took on the case and ultimately settled with the company, canceling the outstanding lien and dismissing the lawsuit. (According to the Better Business Bureau, Servpro of Boise also includes a nondisparagement clause in its contracts with customers, prohibiting them from filing complaints or posting negative reviews.)
But the accountability that happened in North Carolina is rare. Since the rules and regulations for how contractors are required to operate change from one region to another, fraudsters often cross jurisdictional lines after natural disasters to seek out work in regions with the least protections.
Amelia Hoppe, co-founder and executive director of Emergency Legal Responders, an organization dedicated to advancing civil rights and justice after natural disasters, said that homeowners need to be particularly careful about out-of-state businesses.
“The vetting for local governments is really paying attention to who’s coming in from out of state,” she said.
In at least one case, the national Servpro headquarters does appear to have taken action against a franchise.
After multiple complaints from customers of excessive billing, charging for work not performed and intimidation, the company terminated its agreement in 2018 with Servpro of Rosemead/South El Monte. When the franchise continued to operate with Servpro’s logo on a van, the company sued. A federal court ultimately sided with the national company.
According to California records, Servpro of Rosemead/South El Monte’s business license is suspended, though where its owners and past employees have gone since is uncertain.
Mountain Fire aftermath
In Camarillo, One Silver Serve displayed red flags typical of fraudulent contractors, experts said. For one, door-to-door canvassing after a natural disaster, though common, can be a telltale sign of predatory behavior aimed at exploiting vulnerable homeowners. The practice is so prevalent among unscrupulous actors that state laws often require a three-day rescission period, giving homeowners and businesses a brief window to cancel contracts signed under pressure at their doorstep. California is one of the states with a three-day rescission period, and for contracts signed in regions with a disaster declaration, the law guarantees seven days to rescind the agreement.
“The lien tactic, especially, we warn about that a lot,” said Hoppe. “It’s legal leverage without informed consent. Even when it’s technically allowed, it often plays out as coercive. People are overwhelmed, underinformed and don’t have good options.”
Another red flag was that One Silver Serve never provided Crosby an estimate of the damage or a scope of work before starting. Without a detailed breakdown of the planned repairs and their costs, the company could later demand virtually any fee it wanted, consumer advocates warned.
In one Camarillo homeowner’s case, the bill they eventually received stretched dozens of pages, with line items like “clean baseboard,” “clean recessed light fixture,” and “clean closet organizer and rod.” None of those items needed cleaning at all — they had to be ripped out and replaced because of fire damage.
A final warning sign, experts said, is failing to confirm whether the insurance company has a track record with the contractor and will cover the repairs.
“A call to the insurance company, an estimate of benefits from the insurance company, these can be valuable checks on the validity of that relationship,” said Keegan Warren, executive director of the Texas A&M Health Institute for Healthcare Access, who has advocated for the role lawyers can play in identifying and combating harmful practices after a disaster.
U.S. Army Corps of Engineers contractors clear the remains of a church burned in the Eaton Fire.
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Mario Tama
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For Crosby and others, their experience with One Silver Serve has left them shaken and mistrustful of the disaster-restoration industry. Crosby has since moved back into his house and has been slowly making repairs to the sections that were damaged by the fire. His neighbor, however, faces a longer road to recovery. She’s in the midst of securing permits to rebuild the deck and other parts of the house that burned down. She hopes to be back in her home by January.
“When you tell this story, it’s like, ‘Oh, come on, I had to be stupid,’” she said. “But it’s just unscrupulous. You lose your faith in humanity.”
Grist is a nonprofit, independent media organization dedicated to telling stories of climate solutions and a just future. Learn more at Grist.org.
Meanwhile, One Silver Serve continues to operate in Southern California. In January, after the Palisades Fire took 13 lives and burned more than 23,000 acres in and around Los Angeles, One Silver Serve filed at least seven lawsuits in the Los Angeles Superior Court for breach of contract and other allegations. It’s not clear how many of these cases are similar to the ones the company filed against homeowners in Camarillo.
In an April Facebook post, Servpro highlighted the work of its many franchises, including the cleanup One Silver Serve did after the Palisades Fire. “When Servpro franchises come together, wonderful work results,” the post said.
Trump says U.S. will leave Iran within a few weeks
By NPR Staff | NPR
Published March 31, 2026 9:11 PM
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Leo Correa
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AP
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Topline:
President Donald Trump said today that the United States will be leaving Iran very soon, giving a two to three week timetable.
Why now: Trump's remarks came in response to a question about gas prices — which earlier today hit a national average of $4 a gallon. Asked what he would do about it, Trump said: "All I have to do is leave Iran, and we'll be doing that very soon, and they'll become tumbling down."
His timeline?: "I would say that within two weeks, maybe two weeks, maybe three," Trump said.
Updated March 31, 2026 at 20:14 PM ET
President Trump said on Tuesday that the United States will be leaving Iran very soon, giving a two to three week timetable.
Trump's remarks came in response to a question about gas prices — which earlier Tuesday hit a national average of $4 a gallon. Asked what he would do about it, Trump said: "All I have to do is leave Iran, and we'll be doing that very soon, and they'll become tumbling down."
"I would say that within two weeks, maybe two weeks, maybe three," he added.
Trump also appeared to reverse previous promises about reopening the Strait of Hormuz.
"We'll be leaving very soon. And if France or some other country wants to get oil or gas, they'll go up through the strait, the Hormuz Strait, they'll go right up there, and they'll be able to fend for themselves. I think it'll be very safe, actually, but we have nothing to do with that. What happens with the strait? We're not going to have anything to do with it," he said.
Just on Monday, though, Trump offered this threat on social media over the strait reopening: "If for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately 'Open for Business,' we will conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!), which we have purposefully not yet 'touched.'"
The White House later said Trump would speak to the nation about the war at 9 p.m. ET on Wednesday.
Here are more updates from the war in the Middle East:
Iraqi authorities reported a foreign journalist was kidnapped in Baghdad Tuesday. It turned out to be an American freelance reporter, Shelly Kittleson, according to Al-Monitor, a Middle Eastern news site for which she has written articles.
Iraqi security forces said they intercepted a vehicle that crashed and arrested one of the suspected kidnappers, but are stilling searching for the kidnapped journalist and other suspects.
U.S. officials say they're working to get her released.
"The State Department previously fulfilled our duty to warn this individual of threats against them and we will continue to coordinate with the FBI to ensure their release as quickly as possible," Dylan Johnson, the assistant secretary of state for global public affairs, said on social media.
He said Americans, including media workers, have been advised not to travel to Iraq and should leave the country. The statement did not condemn the kidnapping or express concern.
Johnson said Iraqi authorities apprehended a suspect associated with Iran-backed Iraqi militia Kataib Hezbollah, believed to be involved in the kidnapping.
This comes as the U.S.-Israeli war in Iran enters its second month, and the fallout ricochets across the region.
Press freedom organizations expressed deep concern. The Committee to Protect Journalists called on "Iraqi authorities to do everything in their power to locate Shelley Kittleson, ensure her immediate and safe release, and hold those responsible to account."
Based in Rome, Kittleson has reported on Iraq, as well as Syria and Afghanistan, for years, according to Al-Monitor.
Reporters Without Borders said she is "very familiar with Iraq, where she stays for extended periods."
"RSF stands alongside her loved ones and colleagues during this painful wait," the organization said.
Al-Monitor said in a statement it is "deeply alarmed" by her kidnapping. "We stand by her vital reporting from the region and call for her swift return to continue her important work," it said.
U.S. defense secretary visits troops
U.S. Defense Secretary Pete Hegseth made an undisclosed trip to the Middle East to visit troops over the weekend. He did not divulge the location for the troops' safety.
"I spoke to Air Force and Navy pilots on the flight line who every day both deliver bombs deep into Iran, but also shoot down drones defending their base. Many had just returned from the skies of Iran and Tehran," he told reporters in a briefing Tuesday.
He said he "witnessed an urgency to finish the job" and tried to draw a comparison with America's earlier drawn-out wars in Iraq and Afghanistan.
He said the U.S. is improving bunkers and layered air defenses as a priority to protect troops and aircraft.
This comes after more than a dozen U.S. service members were injured, several severely, and U.S. aircraft were damaged in Iranian strikes on a base in Saudi Arabia last Friday. The Pentagon says 13 U.S. service members have been killed and 300 wounded in what it calls Operation Epic Fury.
He repeated the administration's assertion that the U.S. is negotiating with Iran, despite Iranian officials' denial that talks are happening.
He said the U.S. prefers negotiations, but would not rule out using ground troops.
"In the meantime, we'll negotiate with bombs," Hegseth said. "Our job is to ensure that we compel Iran to realize that this new regime, this regime in charge is in a better place if they make that deal."
President Trump told the New York Posthe is in talks with Iran's parliamentary speaker, Mohammad Bagher Ghalibaf.
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Security Council meets after U.N. peacekeeper deaths
Countries denounced the killings of three U.N. peacekeepers in Lebanon this week as they met for an emergency meeting of the U.N. Security Council.
"These are sadly not the only dangerous incidents faced by UNIFIL's courageous peacekeepers," Jean-Pierre Lacroix, the head of U.N. peacekeeping, said, using the acronym for the United Nations Interim Force in Lebanon. "There has been a worrying increase in denials of freedom of movement and aggressive behavior."
Lacroix said initial findings suggested two Indonesian peacekeepers were killed Monday in a roadside explosion in southern Lebanon. A day earlier another peacekeeper from Indonesia was killed when a projectile hit a U.N. base, Lacroix said.
Their deaths came as Israeli forces have invaded Lebanon, intensifying a second front in the war in the Middle East. Israel says it is targeting the Iran-backed Lebanese militant group Hezbollah.
The U.N. has not pinned blame and is investigating the incidents.
Ahead of the Security Council meeting, Israel's ambassador to the U.N., Danny Danon, expressed condolences for the Indonesian peacekeepers' deaths.
Displaced people warm up around a fire outside their tent along Beirut's seafront area on March 30, 2026.
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Dimitar Dilkoff
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Danon blamed Hezbollah for laying explosive devices that killed two peacekeepers on Monday.
U.S. Ambassador to the U.N. Mike Waltz paid tribute to the Indonesian peacekeepers and urged Security Council members not to jump to conclusions but to allow the U.N. to investigate.
Indonesia's foreign minister called for a swift, thorough and transparent investigation.
Iran executions, Starlink arrests
Meanwhile, Iran says it has arrested 46 people who were selling Starlink internet connections — one of the few ways that people in Iran have been able to connect to the global internet while authorities block communication. Starlink allows users to connect directly to the internet via satellite, bypassing government firewalls.
Global internet monitor NetBlocks said the country's "internet blackout has entered day 32."
"Extended digital isolation is bringing new challenges for Iranians, from expired domains and accounts to unpatched servers on a degrading national intranet," it said on X.
Iran said it executed two people who had taken part in opposition activities as well as two citizens it accused of spying for the U.S. and Israel.
Rubio accuses Spain's prime minister of "bragging"
Secretary of State Marco Rubio on Monday responded to news that Spain had closed its airspace to U.S. planes involved in the Iran war by lashing out at the NATO partner. In an interview with Al Jazeera, Rubio answered a question about whether the EU and NATO countries had "betrayed the U.S." by focusing on Spain, a NATO member who has publicly adopted a position opposing the war in Iran.
Gas prices are displayed at a Mobil gas station on March 30, 2026 in Pasadena, California. The average price of one gallon of regular self-service gasoline rose to $5.99 today in Los Angeles County, climbing from $4.69 one month ago, amid the ongoing war with Iran.
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"We have countries like Spain, a NATO member that we are pledged to defend, denying us the use of their airspace and bragging about it, denying us the use of our – of their bases," Rubio said.
Earlier on Monday, Spain Defense Minister Margarita Robles said the country had closed its airspace to U.S. planes involved in the Iran war. It is unclear when the closure started — Spanish Prime Minister Pedro Sánchez had hinted at the measure during a parliamentary debate on March 25.
The weekend the U.S. and Israel launched the attack on Iran, flight records showed at least 15 in-flight refueling planes leaving two jointly operated military bases in the south of Spain after not being allowed to provide support for the military action in Iran. Robles later confirmed the decision by the Spanish Government. That triggered a spat between President Trump and Spain's leadership the week after the war started. Trump said from the Oval Office that he would cut off all trade with Spain if the Spanish government did not allow U.S. forces to use the jointly operated bases. In response, Sánchez doubled down on his stance on the war in the Middle East.
Sánchez has relied on his opposition to the war, making it his main platform at the domestic level. Sánchez's Socialist Party has struggled to keep a government coalition from breaking apart, as he faces pressure to keep his party's hopes alive ahead of a parliamentary election due in 2027.
Trump slams allies
President Trump criticized France and the United Kingdom, among others, on his social media platform.
"All of those countries that can't get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT," Trump wrote on Truth Social.
Trump had asked allies for help after Iran largely blockaded the vital waterway, sending up oil and gas prices. But they have been hesitant to join in the war, with British Prime Minister Keir Starmer repeating again this week that Britain would not get involved.
"You'll have to start learning how to fight for yourself, the U.S.A. won't be there to help you anymore, just like you weren't there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!" Trump's post concluded.
He also said France "wouldn't let planes headed to Israel, loaded up with military supplies, fly over French territory." and called the country "VERY UNHELPFUL."
Dalai Lama calls for peace
Tibetan spiritual leader the Dalai Lama on Tuesday posted an appeal for an end to war in the Middle East.
"History has shown us time and again that violence only begets more violence and is never a lasting foundation for peace," he said on his official account on X.
"An enduring resolution to conflict, including the ones we see in the Middle East or between Russia and Ukraine, must be rooted in dialogue, diplomacy and mutual respect — approached with the understanding that, at the deepest level, we are all brothers and sisters," he said.
He said he was adding his plea to one made at the Vatican by Pope Leo during his Palm Sunday Mass, adding: "His call for the laying down of arms and the renunciation of violence resonated profoundly with me, as it speaks to the very essence of what all major religions teach."
Carrie Kahn in Tel Aviv, Israel, Lauren Frayer in Beirut, Jennifer Pak in Shanghai, Emily Feng in Van, Turkey, Miguel Macias in Seville, Spain, Kate Bartlett in Johannesburg, Jane Arraf in Amman, Jordan, Quil Lawrence in New York, Giles Snyder, Michele Kelemen and Alex Leff in Washington contributed to this report. Copyright 2026 NPR
Aaron Schrank
has been on the ground, reporting on homelessness and other issues in L.A. for more than a decade.
Published March 31, 2026 5:55 PM
This April 2025 image shows an agency logo on a wall inside a LAHSA Commission meeting.
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Samanta Helou Hernandez
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LAist
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Topline:
The Los Angeles region’s homelessness agency missed a Tuesday deadline to submit a federally required annual audit of the agency’s financial records, which could jeopardize its federal funding.
The agency's interim CEO blamed the blown deadline on leadership turnover and competing demands on the finance team.
Why it matters: LAHSA manages hundreds of millions in federal dollars for homelessness services across L.A. County. Missing the audit deadline could put that funding at risk.
LAHSA officials say the U.S. Department of Housing and Urban Development — or HUD — seems understanding. LAist reached out to HUD for comment but hasn't received any.
How we got here: An outside auditor said LAHSA was supposed to turn over its financial statements around December but didn't submit them until March. The auditor's draft report also flags a "significant deficiency" in how LAHSA detects accounting errors — a finding LAHSA may contest.
What's next: On Tuesday, LAHSA officials said the single audit would be filed within the next few weeks.
LAHSA also said it has tapped accounting firm KPMG to overhaul its financial systems. The agency's interim CEO acknowledged that the current system "is not working at all."
The Los Angeles region’s homelessness agency will miss a Tuesday deadline for submitting its federally required annual audit of the agency’s financial records, which could jeopardize its federal funding.
LAHSA executives blamed the delay on a “perfect storm” of leadership changes and competing priorities within LAHSA’s finance department, including an L.A. County review of LAHSA’s delayed payments to contractors.
“Our staff made a good-faith effort to meet the deadline,” interim CEO Gita O’Neill said at a LAHSA Commission meeting Tuesday. “However, over the past year, we've experienced several transitions. As a result, we could not get all the required materials to the auditors as quickly as needed.”
Each year, LAHSA, like all non-federal agencies and organizations that get substantial federal dollars, is required to hire an outside auditor to determine whether it’s properly tracking and reporting the taxpayer funds it manages.
LAHSA’s single audit report for last fiscal year was due March 31, nine months after fiscal year 2024-2025 ended. Earlier this month, LAHSA officials said they were on track to meet the March 31 deadline.
Justin Measley, lead auditor for the firm CliftonLarsonAllen, had warned that LAHSA was months behind schedule turning over records.
At a meeting Tuesday, Measley explained that because of LAHSA’s earlier delays, the firm would need at least an additional week to complete a quality-control review process.
“We’re moving at the fastest pace we possibly can,” Measley said.
On Tuesday, LAHSA officials said the single audit will be filed “at the earliest possible opportunity,” within the next few weeks.
Federal funds at risk
LAHSA manages hundreds of millions of federal dollars each year, through grants from the U.S. Office of Housing and Urban Development, or HUD.
O’Neill said the agency has been communicating with HUD officials regularly about the missed audit deadline and is “hoping for understanding.”
Janine Lim, LAHSA’s deputy chief financial officer, said she’s also been talking with HUD.
“They seem amenable to our situation and to our stated timelines,” Lim said. “So, we are hopeful that this will be a good outcome, despite having missed the deadline.”
HUD did not immediately respond to LAist’s request for comment Tuesday.
What went wrong
Measley said LAHSA’s financial statements should have been turned over around last December, but LAHSA only submitted them this month, after blowing through multiple extended deadlines.
Measley said he contacted LAHSA’s governing commission about the overdue documents March 3.
He said he also previewed his firm’s findings, noting one “significant deficiency” in its draft report, related to LAHSA’s timeliness in detecting accounting errors.
LAHSA could contest those findings, officials said. That would add additional back-and-forth between the homelessness agency and accounting firm before the audit report is ready to file.
Justin Szlasa, a LAHSA commissioner who chairs the audit subcommittee, told LAHSA’s CEO he’s concerned that there was no time provided for LAHSA’s governing body to review the audit report.
“Next year, we will absolutely do that,” O’Neill responded. “I think this year, we were under the gun, and so we felt it was the most important thing was to get it uploaded on time.”
O’Neill said the agency hired accounting firm KPMG to help modernize LAHSA’s financial systems, with a focus on its contractor payments.
“We have an outside, trusted voice to help us create a system that works going forward because the system we have is not working at all, in finance,” O’Neill said.
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President Donald Trump has escalated his efforts to influence American elections, signing an executive order that the White House says seeks to create a list of confirmed U.S. citizens who are eligible to vote in each state and use the U.S. Postal Service to "verify" mail ballots are for voters.
Why it matters: Trump has long railed — baselessly — about widespread illegal voting by noncitizens and mail voting fraud. The executive order comes as Trump's Justice Department is seeking sensitive voter data from states, and is engaged in more than two dozen lawsuits for that data. The administration claims it needs the data to enforce states' voter list maintenance. The order also comes as Trump pressures Republicans in Congress to pass the SAVE America Act, a sweeping election overhaul that would impose new voter identification and documentation requirements. That bill is stalled in the Senate due to Democratic opposition and the legislative filibuster.
What's next: Trump said he believes the order is "foolproof." But election experts have already said the order — which was first reported by The Daily Caller — would face immediate legal challenges.
Updated March 31, 2026 at 20:44 PM ET
President Trump on Tuesday escalated his efforts to reshape American elections, signing an executive order that seeks to create lists of U.S. citizens who are eligible to vote in each state, and instructing the U.S. Postal Service to send mail ballots only to verified voters.
Trump told reporters in the Oval Office that he believes the order is legally "foolproof." But election experts said the order was unconstitutional, and voting rights advocates and Democratic state officials quickly pledged to sue to block the order from going into effect.
A previous executive order on elections, signed about a year ago, has been blocked by federal judges who said the president lacked the constitutional authority to set voting policy.
The Constitution says the "Times, Places and Manner" of federal elections are determined by individual states, with Congress able to enact changes.
"This Executive Order is a disgusting overreach from the federal government and shows how little the Trump Administration understands about election administration," Adrian Fontes, the Democratic secretary of state of Arizona, said in a statement Tuesday. "We will not let this order stand without a fight and will meet the federal government in court," he added.
Arizona is among more than two dozen states Trump's Department of Justice has sued over access to sensitive voter data.
The Trump administration claims it needs the data to enforce states' voter list maintenance. Federal judges in three states have dismissed the Justice Department's lawsuits in those states.
In another case, a DOJ official admitted in court last week that the department plans to share that voter data with the Department of Homeland Security, to run it through the so-called SAVE system to search for noncitizens.
Trump has long railed — baselessly — about widespread illegal voting by noncitizens and fraud associated with mail ballots.
The new executive order — which was first reported by The Daily Caller — takes aim at both.
It instructs the Department of Homeland Security, working in conjunction with the Social Security Administration, to "compile and transmit to the chief election official of each State a list of individuals confirmed to be United States citizens who will be above the age of 18 at the time of an upcoming Federal election and who maintain a residence in the subject State."
The order then "requires the USPS to transmit ballots only to individuals enrolled on a State-specific Mail-in and Absentee Participation List, ensuring that only eligible absentee or mail-in voters receive absentee or mail-in ballots," according to a White House fact sheet.
Trump's executive order claims that "additional measures are necessary" to secure voting by mail, a form of voting he has used himself — including last week — but also falsely maligned for years. In the 2024 general election, nearly a third of all voters cast mail ballots.
The Postal Service should also review the design of mail ballot envelopes to protect "the integrity of Federal elections," the order says.
Collectively, the provisions would be a significant change to how mail ballot programs are currently administered in American elections, which are largely carried out by state and local officials.
"Our government's citizenship lists are incomplete and inaccurate. The United States Postal Service is overburdened and inadequate. This combines a car crash with a train wreck," the Brennan Center for Justice, which advocates for expanded voting access and sued to block Trump's 2025 election executive order, said in a statement.
Rick Hasen, an election law expert at UCLA, wrote on his blog that the order is likely unconstitutional. And regardless, he added, "the timing here makes this virtually impossible to implement in time for November's elections. … It seems highly unlikely any of this could be implemented for 2026, even if it were not blocked by courts."
The order comes as Trump pressures Republicans in Congress to pass the SAVE America Act, a sweeping election overhaul that would impose new voter identification and documentation requirements.
That bill is stalled in the Senate due to Democratic opposition and the legislative filibuster.
The Supreme Court is also expected to rule this year on whether Mississippi should be allowed to count mail ballots that are postmarked by Election Day but received by election officials after Election Day.
The legal challenge, which could have sweeping implications for mail voting nationwide, was filed by the Republican National Committee and Trump's 2024 presidential campaign.
Federal agents stand guard outside of a federal building and Immigration and Customs Enforcement (ICE) detention center in downtown Los Angeles during a demonstration in June.
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Spencer Platt
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Getty Images
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Topline:
Federal immigration officials arrested more than 14,000 people in the greater Los Angeles area in 2025 — the majority of whom had no criminal record, according to an LAist analysis of new data from the Deportation Data Project.
What’s new: In 2025, federal officials arrested 14,394 people, up from 4,681 the year prior. Forty-six percent of people arrested had criminal convictions, 15% had pending charges and 39% had no criminal charges or convictions.
Why it matters: Federal officials have highlighted the arrests of the “worst of the worst” in the immigration raids that began in June, including "murderers, kidnappers, sexual predators and armed carjackers,” but haven’t published the details of the number of people who had criminal records.
Federal immigration officials arrested more than 14,000 people in the greater Los Angeles area in 2025 — the majority of whom had no criminal record, according to an LAist analysis of new data from the Deportation Data Project.
The data project, an initiative between UCLA and UC Berkeley, publishes federal data obtained under the Freedom of Information Act.
In 2025, federal officials arrested 14,394 people, up from 4,681 the year prior. Forty-six percent of people arrested had criminal convictions, 15% had pending charges, and 39% had no criminal charges or convictions.
In a December news release, the Department of Homeland Security said it had arrested more than 10,000 people in the L.A. area since immigration raids began in June of last year, including "murderers, kidnappers, sexual predators and armed carjackers,” but did not publish details of the number of people who had criminal records.
The data from the Deportation Data Project shows that arrests in L.A. spiked in June, and about two-thirds of people arrested that month had no criminal convictions.
More than 313,000 people were arrested by ICE nationwide in 2025, according to an LAist analysis.
In a statement, a DHS spokesperson said the agency has not “verified the accuracy, methodology or analysis of the project and its results” and said “this only reveals how data is manipulated to peddle the false narrative that DHS is not targeting the worst of the worst.” The spokesperson said 61% of people ICE arrested across the country either had criminal convictions or pending charges.
The agency has regularly published press releases identifying people they have arrested and who they have called “the worst of the worst,” including from the raids in L.A. in June. But an LAist investigation and reporting from other outlets has found that some of the people on those lists already has been in custody and were serving lengthy sentences.