A District of Columbia community nonprofit group is accused in a lawsuit of diverting government grant funds to buy two luxury sport utility vehicles for its chief executive.
The D.C. Office of the Attorney General announced Friday a case against Peaceoholics Inc., which provides services for at-risk youth.
The lawsuit seeks to recover more than $100,000 in grant funds that it says were used to buy luxury cars for CEO Jauhar Abraham. A lawyer for Abraham didn't return a call seeking comment.
The attorney general's office also says the group received more than $178,000 after submitting a false grant application to the D.C. Children and Youth Investment Trust Corporation. That application included inaccurate details about the compensation received by Abraham and former chief operating officer Ronald Moten.
Peaceoholics co-founder Jauher Abraham told News4 the money wasn't their salary, but reimbursement.
"When these children can't pay for books for school, we pay for it, and when we get the money from the city, then we're reimbursed and that's how it goes," Abraham said.
Attorney General Irv Nathan said he is now reviewing every grant administered by the Children and Youth Investment Trust Corporation, and that more lawsuits may be filed against other non-profits.