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.
The case was brought forward by the D.C. Attorney General’s Office, which said the actions undermined the mission of an organization focused on serving the community.
“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.
Between 2017 and 2023, Brewer gave himself bonuses ranging from $150,000 to $350,000 per year. The lawsuit alleged some of the money came from proceeds tied to nonprofit property sales, which were intended to fund housing and development efforts.
“Through this judgment, $1.225 million in misappropriated funds will go toward affordable housing and local business development as donors originally intended,” Schwalb added.
At the center of the case is the HSCDC, which was founded in 1984 to help rebuild the riot-damaged H Street neighborhood and bring business back to the area. The nonprofit works to expand affordable housing and support economic development along the corridor.
The HSCDC board never approved the bonuses because they were not informed about them until May 2023. HSCDC filed a civil suit in 2024, saying Brewer had abused his position and misappropriated funds.
In a Washington Business Journal profile in 2020, Brewer described his work in affordable housing as focused on helping families and communities. But the OAG argued Brewer violated his legal duty to act in the best interests of the HSCDC by diverting resources for personal benefit.
D.C. Superior Court Judge Leslie A. Meek agreed, finding Brewer violated his legal obligations to HSCDC and improperly used charitable funds.
The court placed a constructive trust over Brewer’s assets, a legal step that allows HSCDC to get the money back.
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