Washington, D.C. – Attorney General Brian Schwalb filed a civil lawsuit on Thursday accusing nonprofit founder Allyson Abrams of misusing over $125,000 in District grant funds that were earmarked for addiction counseling and treatment. The complaint alleges Abrams funneled the money into personal cash withdrawals, payments to her spouse, and businesses tied to her real‑estate interests, while submitting falsified invoices and checks that employees never received.
Allegations and Settlement Breach
The lawsuit says Abrams agreed in a December 2025 settlement to repay $110,000 in eleven monthly installments and to relinquish control of the nonprofits’ finances. To date, eight payment deadlines have passed and the District reports receiving no money.
From 2019 through 2025, the District paid Abrams’s organizations—Empowerment Justice Center Corporation (EJC) and Empowerment Liberation Cathedral—more than $475,000 for outreach, counseling, and addiction treatment. EJC dissolved in 2025, but the complaint alleges the nonprofits failed to hold proper board meetings, keep written records, or maintain basic nonprofit governance.
Specific Misuse Claims
According to the complaint, Abrams used grant money to supplement her approved salary through cash withdrawals, bonuses, advances, and transfers to herself, her spouse, and companies linked to her real‑estate business. The amount exceeding her salary is alleged to be over $125,000.
Investigators also say checks were written from an EJC account to cover employee salaries, then copied and submitted to the District as supporting documentation for two reimbursement invoices totaling more than $40,000. The employees never received those checks, indicating the documents were fabricated.
Failed Payments and Ongoing Noncompliance
The settlement required the nonprofits to close existing bank accounts and move remaining funds into accounts approved by the Attorney General’s office, with no access for Abrams or her spouse for ten years. While Abrams was allowed to remain leader of Empowerment Liberation Cathedral—a religious nonprofit—the agreement barred her from controlling its money.
Schwalb’s office says Abrams has not provided the required banking information, nor has she notified the Attorney General of EJC’s dissolution as required. The District is now asking a judge to order full repayment of the $110,000, plus interest, and to compel the production of bank records.
Community Reaction
Local residents expressed relief that the District is pursuing accountability. “D.C. needs much stronger oversight over its grants and contracts,” wrote social‑media user Alex Taliadoros.
Attorney General Schwalb emphasized the broader impact: “Nonprofit leaders cannot treat their organizations like personal slush funds. We are holding her accountable and ensuring that taxpayers’ money is returned and protected for those who truly need it.”
Original reporting: The Washington Informer — read the source article.
