Attorney General Schwalb Sues Nonprofit Founder Who Diverted $125,000+ of District Grant Money for Personal Use

Attorney General Brian L. Schwalb today sued Allyson Abrams and two nonprofit organizations she founded, Empowerment Justice Center (EJC) and Empowerment Liberation Cathedral (ELC), for misusing nonprofit funds and then failing to comply with the terms of a settlement agreement resolving their violations of District law.

In its lawsuit, the Office of the Attorney General (OAG) details how Abrams misappropriated more than $125,000 in DC government grant funds intended to provide addiction treatment, counseling, and other services to at-risk community members. After OAG opened an investigation, Abrams, EJC and ELC entered into a settlement agreement and Abrams agreed to repay $110,000 to the District to avoid litigation, as well as make other changes to ensure that Abrams would no longer control nonprofit funds. However, Abrams, EJC, and ELC violated the terms of the settlement, and Abrams has re-paid none of the $110,000 she agreed to pay. OAG has now filed suit alleging breach of her contractual obligations under the settlement agreement and seeking to enforce the settlement and recover fees and costs associated with this enforcement action.

"Nonprofit leaders cannot treat their organizations like personal slush funds. Abrams misused government grant money and undermined efforts to support some of our community's most vulnerable," said Attorney General Schwalb. "We're holding her accountable and ensuring that she repays the District and its taxpayers the funds she unlawfully diverted."

Background

Allyson Abrams is a Maryland resident and the founder of two nonprofit organizations, EJC and ELC. EJC is a Maryland nonprofit formed in 2017 to provide mental health services, housing support, HIV/AIDS services, education, and pastoral care to members of historically disenfranchised groups, including those in the LGBTQ+ community. It dissolved in 2025. ELC is a DC nonprofit religious corporation that was formed in 2018 to provide religious services and meetings, and to train members of the faith community to provide education and services to needy individuals.

From 2019 until 2025, the District of Columbia government paid EJC and ELC over $475,000 to provide outreach, counseling and addiction treatment services to individuals in the District. These grants provided nearly all of EJC's and ELC's funding during that time. After Abrams sat for a deposition in another civil case and refused to answer questions about how she and EJC used District funds, OAG opened an investigation.

OAG found evidence that Abrams, ELC, and EJC violated DC law by:

• Taking more than $125,000 from ELC and EJC for Abrams's own personal use. Abrams withdrew cash and transferred funds to herself, her spouse, and corporate entities related to her real estate business. These improper cash withdrawals and transfers were on top of an approved salary Abrams was paid under grant agreements with the District, and the nonprofit funds she purloined were intended to provide addiction treatment and other services in DC.
  
• Submitting false claims for payment to the District. Abrams submitted tens of thousands of dollars of falsified invoices, supported by fake checks, to support requests for reimbursement.
  
• Failing to uphold basic requirements of nonprofit governance, including failing to hold board meetings and elections, failing to maintain written records, failing to exercise necessary oversight of nonprofit funds.

2025 Settlement Agreement

In December 2025, Abrams, EJC, and ELC entered into a settlement agreement to resolve these violations of DC law. Abrams agreed to:

• Pay $110,000 to the District via an 11-month payment plan.
  
• Step down from EJC's board, give up control over EJC's funds, and notify OAG if EJC is dissolved. EJC agreed to transfer any remaining funds to new, OAG-approved bank accounts that neither Abrams nor her spouse could access.
  
• Give up control over ELC's funds. ELC was required to transfer any remaining funds to a new, OAG-approved bank account that Abrams and her spouse could not access. (Because ELC is a religious entity, it may continue to operate and Abrams may continue to lead it.)
  

Breach of Settlement Agreement & New Lawsuit

After signing the agreement, Abrams failed to follow through and has not complied with the agreed-upon terms. She has not made any of the agreed-upon payments to the District, and has missed eight payments thus far, despite more than a dozen notifications from the District via letter and email.

Abrams dissolved EJC but contrary to the agreement, never informed OAG of the dissolution. Similarly, EJC and ELC never provided any documentation that their existing bank accounts were closed and funds were transferred to accounts Abrams could not access-and ELC continues to solicit donations via its public website.

Now, OAG has filed a lawsuit against Abrams, EJC, and ELC, alleging breach of contract. The suit seeks to enforce all of the terms of the settlement agreement, including collecting the full amount Abrams owes plus interest, and securing documentation to ensure Abrams no longer controls EJC or ELC's nonprofit funds. The District is also seeking to recover costs and attorneys' fees for bringing this enforcement action.

The District's complaint is available here.

The original settlement agreement is available here.

This matter is being handled by Assistant Attorney General Cara Spencer and Adam Gitlin, Section Chief of the Antitrust and Nonprofit Enforcement Section.

About the District's Nonprofit Corporation Act

Under the District's Nonprofit Corporation Act (NCA), the Attorney General has the authority to police nonprofit activities and ensure that nonprofit entities operating in DC spend their funds to serve their stated missions. Nonprofit organizations are set up to benefit the public, and nonprofit funds cannot be spent to benefit a private individual or company-especially an individual who has influence over the organization.

OAG's Nonprofit Enforcement Work

Since becoming an independently elected Attorney General's office, OAG has steadily expanded its capacity to enforce District laws governing nonprofits. Last year, OAG sued a nonprofit executive for misspending the nonprofit's funds on purchase luxury vacations, personal pet care, and more, and obtained a ban on the executive's serving in any capacity at any District nonprofit. More recently, OAG also obtained a judgment against the former executive director of a local affordable housing nonprofit who diverted more than $1.25 million to pay himself unauthorized bonuses.

Previously, the office secured a revised deal to sell the nonprofit Providence Hospital campus for redevelopment that protected $5 million in healthcare resources for the District and ensured that the proceeds of the sale of property owned by an affordable-housing nonprofit would still be used to provide affordable housing in the District. OAG also resolved an investigation into the Coast Guard Auxiliary Association for improper payments to its Board President, and a civil action against Delta Phi Epsilon, Inc. for using nonprofit funds for personal gain.

If you suspect that a nonprofit or officer of a nonprofit doing business in the District of Columbia is violating District law, please contact OAG at (202) 727-3400 or at [email protected].

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