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In August, LAist reported that LAHSA continued to sign contracts with Alexander Soofer's charities after internal auditors flagged them as 'high-risk'.
A third defendant, Donye Mitchell, remains at large.
Michael Young is the founder of the nonprofit Home At Last.
Federal prosecutors allege Michael Young misappropriated $12 million in public funds for personal expenses, including vacations and a nightclub.
The DOJ says the nonprofit Home At Last received $118 million in public funds via contracts with the Los Angeles Homeless Services Authority (LAHSA).
Michael Young and Lakiya Malone have both been charged with wire fraud.
Lakiya Malone is accused of accepting $180,000 in bribes and kickbacks from Alexander Soofer to place homeless clients, including fictitious ones, in his charity's programs.
Alexander Soofer was arrested in January on fraud charges and has admitted to misappropriating $10 million in public funds.
Defendants Michael Young and Lakiya Malone were arrested by federal agents at their homes on Wednesday morning.
The DOJ announced on Wednesday it charged three individuals with defrauding federal funds for Los Angeles homelessness programs.
ACLU attorney Scarlet Kim described the Task Force's actions against Mr. Demster and other clients as an 'unrelenting campaign of harassment' and a 'gross violation of their constitutional rights'.
Nine federal circuit courts have upheld the right to record police, provided there is no physical interference.
Over the past two years, videos have shown federal immigration agents arresting or threatening people for filming them in locations from Oregon to the Florida Keys.
Fact: Hunter Demster cofounded a local group that monitors the activities of the Memphis Safe Task Force.
ACLU attorney Scarlet Kim stated that Task Force agents should neither stake out clients' homes for recording them nor abuse the Halo Law to interfere with their First Amendment right to record.
Fact: In legal declarations, Hunter Demster estimated that task force members used the "Halo Law" 40 to 50 times to threaten him with arrest.
Fact: Florida, Louisiana, Indiana, and Arizona have passed "buffer zone" laws similar to Tennessee's in recent years.
Fact: A lawsuit filed by the ACLU and others seeks a preliminary injunction to stop task force officers from intimidating, assaulting, or arresting people for recording them.
Fact: Hunter Demster was released at the scene of his arrest.
Fact: Hunter Demster's legal declaration states that task force agents went to his home on August 30 and September 3 to take pictures and video of him.