Loose Lips

D.C. Sues Peaceoholics Over Luxury SUVs, Salaries

Peaceoholics co-founders Ron Moten and Jauhar Abraham

The District government, which gave gang intervention group Peaceoholics more than $5 million in anti-violence grants during ex-Mayor Adrian Fenty's administration, sued the group today for allegedly submitting a falsified grant application in 2009.

Attorney General Irv Nathan's lawsuit against Peaceoholics and co-founders Jauhar Abraham and Ron Moten accuses the two of understating how much they received in compensation from the nonprofit on federal tax forms, a lie that enabled them to receive grants from the District's troubled Children's Youth Investment Trust Corporation.

As part of their application for CYITC grants in 2008 and 2009, according the lawsuit, Peaceoholics submitted its IRS Form 990 nonprofit tax forms. Moten's compensation in 2006 as described as $63,314, while Abraham's was described as $66,652.

In fact, according to the District, Moten was being paid $98,381.18, while Abraham made $158,301.60—$91,649.60 more than the salary listed on tax forms. If Peaceoholics had listed accurate compensation information on its tax forms, according to Nathan, CYITC would never have given them a grant.

The lawsuit also accuses Abraham of buying himself two 2004 GMC Yukon Denali XL trucks, when he had taken out a loan saying he would buy them for the group. The District is seeking both of the SUVs and at least $616,489.50 in restitution.

Both Abraham and Moten denied the charges against them. For one thing, the SUV's were the same color—a sign, according to Abraham, that the accusations he intended the cars for his personal use is absurd.

"Why would I buy a red one, or a black and a blue one?" Abraham asked LL. "Why would I buy two of the exact same vehicles?"

Both Moten and Abraham compared their situation to that of ex-Ward 5 Councilmember Harry Thomas Jr., whose nonprofit also received money from the CYITC (more than $300,000 of which Thomas admitted stealing for his personal use). Abraham concedes that he isn't a bookkeeper, but then, neither was Harry Thomas. "Did Harry Thomas have to submit paperwork in order to get money from the trust?" Moten asked. Maybe not, but LL wouldn't suggest comparing yourself to a convicted felon as a press strategy.

Moten, who supported former Mayor Adrian Fenty in his 2010 campaign against Mayor Vince Gray, says it can all be understood through one thing: hit ABC drama Scandal. The Gray administration is behind the suit, Moten claims, in an attempt to distract from the federal investigation into Gray.

"This is a Kerry Washington moment," Moten says, referring to the actress who plays a crisis consultant on the show.

The District also sued WEALTHY, another nonprofit, for allegedly falsifying expenditure reports in support of its own CYITC grants.

Read the Peaceoholics complaint below:

Photo by Darrow Montgomery

  • cminus

    Everyone is entitled to the presumption of innocence. That said, the only surprising thing about this article is that it's taken this long.

    Still, it's good to see Irv Nathan getting in on the public integrity beat, since he's done an admirable job on his other duties. Replacing Peter Nickles with Nathan is possibly the best thing Gray has done as Mayor.

  • Smh

    About damn time!!!

  • Diane B.

    Ro Ro Moten going back to the pokey!

  • Gray is Akward

    your name is cminus? Gray cant read #Maachen4Mayor

  • noodlez

    GOTTTT DAMNNNN!

  • Smh

    Next up: Trayon White!!!

  • IAmNotALiberalDemocrat

    Ghetto thugs!

  • The Java Master

    Cheats! Liars! Con artists! Peaceoholics my ass...just another poverty-pimping group claiming to serve the community when they only serve themselves.

  • Chris

    It never ends with Gang Banger Moten.

    2010: The DC Office of Campaign Finance issues a public reprimand against Moten for election law violations.

    2011: It is revealed that a corrupt DHCD under the Fenty Administration actually funneled millions of dollars to Moten's organization to build "affordable housing." Moten's only experience demonstrated knowledge of public housing was that he had lived in a prison. Moten's group never completed the construction, of course.

    2012: Moten switches parties and becomes a Republican. Moten runs against Yvette Alexander for her Council seat and loses.

    2013: Moten's SUV scam is revealed.

    DC to Moten: Ron, please leave. You're not entertaining anymore.

  • qwerty

    So good to see Ron Moten go down.

  • truth hurts

    Truth time, folks. Terms like "presumption of innocence" and "back to the pokey" don't apply in civil lawsuits such as this one. The Complaint doesn't allege an intent to defraud or even claim these guys would have been ineligible for grants had their tax forms reported higher compensation at the level Irv claims it was.

    Underpinning the Complaint is Irv's assertion their FEDERAL tax filings were inaccurate, yet there's nothing in the Complaint to suggest the FEDS share this view. If the FEDS (Machem) believed Moten & company intentionally falsified documents in order to personally benefit from public money, it seems to me they'd bring criminal charges.

    I'm no fan of Moten's, and these guys might well have submitted inaccurate IRS forms. But no crime has been alleged, not yet anyway.

  • candycane1

    "Did Harry Thomas have to submit paperwork in order to get money from the trust?" Moten asked. Maybe not, but LL wouldn't suggest comparing yourself to a convicted felon as a press strategy.

    No he didn't and you don't either. But let me ask you one thing. Where is Harry now?

  • Buy A Vowel

    These two CR--KS have plenty of Council support. Which Councilmembers routinely speak highly of Crook-a-holics schemes?

  • Great Investigative Reporting

    The Washington Post Endorses Ron Moten in Ward 7 Race
    http://dcist.com/2012/10/more_post_endorsements.php

  • StrangeFruit

    @ Great Investigative Reporting,

    The Wash Post is a joke!

  • SK

    Hmmm, I didn't know LL does political consulting on the side :-)

    "Maybe not, but LL wouldn't suggest comparing yourself to a convicted felon as a press strategy."

  • Former Shaw Resident

    For years the neighbors in Shaw asked about the "Piece of the Pie" o-holics. When asked for simple things like 990 forms and other public filings we were told to mind our own business. When asked for examples of one long standing program with actual results we were told to mind our own business. Jack Evans (and a few of the ANC folks) loved this program until finally even he saw it for what it was - a sham. My lasting memory of Moten will be a crime forum with the Mayor and half of the MPD in attendance - he acted like a petulant child while the neighborhood sat and laughed - as soon as Mayor Fenty left he was just another citizen with no real power.

    Likely we will see Mr. Moten blame everyone but his mother for his little scheme...but my bet is nothing real comes out of this. Just sad because so many people called this from the start and were simply told to mind their own business...just wonder how many tax dollars would have been saved.

  • mizwillis

    @FMSHREZ #17:

    The answer to your question is AN AWFUL LOT!!!!!

    This crook and The Fenty/Nickles Gang netted more loot than ALL of the small timers recently investigated/indicted/incarcerated AND the big timer JT the Feds are focusing on now.

    Who said Crime Doesn't Pay??????? Where is Machen when you need him?

  • mizwillis

    LL:

    And where is moderation when you need it?
    Filth gets spewed across the screen, but truth gets flushed?

  • NE John

    A peaceaholic will not rest until he gets his piece. It is a pitiful sickness that should be treated with solitary confinement.

  • Pingback: No mercy for Nats scalpers

  • Ward-8

    Come on folks, Ron (Thug) Moton said last night, there was no fraud, why would they buy two SUV the same color and year, The Vehicles was put in Abraham's name because peaceoholics did not have credit, I guess the Tax exempt status and millions in the bank didn't count. I get it, how best to impress the thugs in the neighborhood than carrying them around in luxury automobiles and when question, whip out the registration and say "see kids you can stickup the Government with no guns" Yes, I totally understand, and the carnage in the Capitol City continues!

  • Smh

    @Ward-8: Exactly! They basically flipped the script. Instead of robbing folks on the street, they're robbing the government...which is paid for with OUR money.

    Unfortunately for Ward 8, Trayon White is making attempts to do the same damn thing with his unregistered "non-profit", HICKS.

  • noodlez

    PEACEOHOLICS GOT THEIR PIECE OF THE PIECE IN THE NAME OF PEACE.

    JUST SAYING.

  • Barrie Daneker

    Off to big house! Ron you stole from kids and gang bangers time to go to the big house for some R&R

  • Ward3dem

    @SMH How exactly is Trayon White "attempting to do the same thing?" From what I have heard and seen he is a very well liked and positive member of his community. In fact many have told me that they believe that he is the most likely successor to Barry. I counsel you not to throw the baby out with the bathwater and do some introspection about your real motives for including him in a mess that aparently has NOTHING to do with him. Ward 8 has enough challenges without fear mongers creating more. Attend to the real business of the ward and save the gossip for the hair salons.

  • seDCdude

    I tell you what's even more pathetic, go visit Moten's FB page and read this clown's attempts at deflection and excuse making!! The dude really believes he's DONE NO WRONG and his "followers" are even worse!

    This type of cowardice will be his downfall; LOUD, IGNORANT, WRONG, PHONEY and DUMB, smdh!

  • seDCdude

    Now we just need the dots to connect Fenty's raggedy behind!!

    Starting to read like ALL THE QUEEN'S MENS'S' hahahaha

    ooohh the layers I tell you!

  • Smh

    @Ward3dem: Stay in a Ward 3 place and get out of Ward 8 business. Illusions are everything in politics. Those who live in the ward know the real Trayon. Nothing but an empty suit looking for a paycheck like michael brown.

  • Ward3dem

    @SMH While your comment is almost too ignorant to garner response I still must ask what exactly do you mean by "attempting to do the same thing"? Just because I reside in Ward 3 does not mean that I do not donate significant amounts of MY hard earned money to causes and Candidates east of the river. I asked a pretty clear and straight forward question about Mr. White. If you have information that we should know about him then by all means please share it. Otherwise I do not understand your animosity towards the young man. I have one more question for you. Who did you vote for in the two recent at large elections? I ask this because ward 8 has a habit of electing poor leaders then complaining about how corrupt they are. M.Brown got a significant portion of the ward 8 vote as did A.Bonds. They are both clearly not ideal candidates and yet "Those who live in the ward" gave them their vote. So my question is who did you vote for and what makes them a better Candidate then say Ellissa Silverman or David Grosso?

  • SEis4ME

    @Ward3, I voted for Anita Bonds because I thought she was the best candidate to advocate for the needs of the whole rather than sum...which is not the platform on which Silverman ran. I voted for Bonds because she was the best candidate.

    Thankfully, I get to vote for whom I want as well as complain about them when I see fit. We in W8 get that option like those of you in W3

  • seDCdude

    Damn, that MASK came all the way off, LOL!!

  • swift

    Abraham needs to pay jus more than $20k n child support

  • Leroy

    jail house niggas with GED's robbing us without a gun

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