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Graham, D.C. housing ask AG to investigate fraud

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Local,Capital Land,DC,Liz Farmer

D.C. Councilman Jim Graham detailed on Monday his investigation that allegedly found millions of dollars of misspent money at the city's housing and community development department. According to Graham, who represents Ward 1, developers and the nonprofit Peaceoholics misused money meant to build low-income housing for men.

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  • "Why did we buy a condo building which was so much more expensive than a rental?" Graham asked in an interview with the Washington Examiner. "Why did we buy a building that needed a total renovation? The only explanation, as far as I can see, is it was so they could make the most money."

    Graham and Councilman Michael Brown, who chairs the council committee that has oversight of the agency, have called for the Attorney General and Investigator General to launch their own investigation into the housing agency.

    Later on Monday, DCHD issued a statement saying that it, too, had been looking into the Peaceoholics housing project. One DHCD employee has been fired, and a second employee has been placed on administrative leave while the investigation is conducted, according to the release.

    "Any improper behavior discovered by the [Office of the Inspector General] or [Office of the Attorney General] will result in the appropriate administrative action," said DHCD Director John E. Hall.

    Peaceoholics founder Ron Moten also issued a statement Monday that denied any part of the housing project.

    "If there was any wrong doing, I was not part of it," Moten said. "My role in Peaceoholics was primarily in community organizing and providing services for the most vulnerable."

    Click here to see some of the details from Grahams' investigation. Neither the OAG nor the OIG has said whether they will pick up the investigation.

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