D.C. Judge Orders Former Nonprofit Executive Director To Pay Back $1M - Above the Law

"A D.C. Superior Court Judge has ordered the former executive director of the nonprofit H Street Community Development Corporation to repay more than $1 million that authorities say was misused. The D.C. Attorney General's Office lawsuit against Kenneth Brewer Sr., who served as HSCDC's executive director from 2010 until 2023, routed $1.225 million through a related subsidiary and used it to pay his own annual bonuses...."Particularly at a time when District residents are facing serious financial challenges, my office will not allow nonprofit executives to exploit their positions of power to line their own pockets with charitable funds," Attorney General Brian Schwalb said in a news release."

"When donors sent their money to H Street Community Development Corporation, chances are lining the executive director's pockets weren't at the top of their to-do list. Unfortunately, former director Kenneth Brewer Sr. decided to give himself several six-figure bonuses over the span of a couple years. The Board, which was not told about his self-administered bumps in pay, sued him for misappropriation of funds back in 2024."

"After years in court, the money will find its way back to the community it was meant to help. Once the money is back in HSCDC's hands, the $1.225M will go toward its original purpose - aiding affordable housing and local business development."

H Street Community Development Corporation relies on donations to support affordable housing and local business development. Donors can hesitate when they fear funds may be used for purposes other than those promised. Kenneth Brewer Sr. served as executive director from 2010 until 2023. A D.C. Attorney General lawsuit alleged that $1.225 million was routed through a related subsidiary and used to pay his annual bonuses. The Board sued him in 2024 for misappropriation of funds without being informed of the pay increases. After years in court, a D.C. Superior Court judge ordered repayment of more than $1 million so the money can return to the community and its original mission.

Read at Above the Law