D.C. Says Nonprofit Founder Took $125,000 Meant for Addiction Treatment, Then Paid Back Nothing

August 31, 2026

D.C. Attorney General Brian Schwalb has filed a lawsuit against Allyson Abrams and two nonprofits she founded after she allegedly misused over $125,000 in government grant money intended for addiction treatment and counseling services. Abrams reportedly diverted funds to herself, her spouse, and her real estate businesses through cash withdrawals, falsified invoices, and fake employee checks between 2019 and 2025. After signing a December 2025 settlement agreement requiring her to repay $110,000 in installments and relinquish financial control of the organizations, Abrams missed all eight payment deadlines without paying a single dollar.

Who is affected

People fighting addiction who were supposed to receive treatment services
People needing counseling and support services
Vulnerable community members served by the nonprofits
Employees of Empowerment Justice Center who allegedly never received paychecks
D.C. taxpayers whose grant money was diverted
Allyson Abrams (nonprofit founder and defendant)
Abrams' spouse
Empowerment Justice Center Corporation and Empowerment Liberation Cathedral (the two nonprofits)
Historically disenfranchised communities the organizations were meant to serve

What action is being taken

D.C. Attorney General Brian Schwalb is suing Abrams and the two nonprofits
The attorney general's office is seeking a court order for payment of $110,000 plus interest
The District is requesting bank records showing where nonprofit funds are held and who controls them
Empowerment Liberation Cathedral continues soliciting donations from the public online

Why it matters

This case matters because it involves the misappropriation of public funds intended to help some of the community's most vulnerable populations, including people struggling with addiction and those needing mental health services. The alleged fraud undermines public trust in nonprofit organizations and government grant programs designed to deliver critical social services. It demonstrates the need for stronger oversight of government grants and contracts to ensure taxpayer money reaches its intended beneficiaries rather than being diverted for personal enrichment. The case also highlights accountability issues when nonprofit leaders treat charitable organizations as personal financial resources.

What's next

The defendants will have an opportunity to respond to the allegations in court
A judge will decide whether to order Abrams to pay the full $110,000 plus interest
The court will determine whether to compel production of bank records showing fund control
The District seeks a ruling on coverage of attorneys' fees and costs

Read full article from source: The Washington Informer