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Court Awards the District $638,989 Judgment against Peaceoholics, Inc. and Its Co-Founder Jauhar Abraham for Diversion of District Grant Funds

Wednesday, July 2, 2014

Court Awards the District $638,989 Judgment against Peaceoholics, Inc. and Its Co-Founder Jauhar Abraham for Diversion of District Grant Funds

CONTACT:
Ted Gest, Public Information Officer
202-727-6283
ted.gest@dc.gov

WASHINGTON, D.C. – A Superior Court judge has entered an order of default judgment against Peaceoholics, Inc. and its CEO and co-founder, Jauhar Abraham, for $638,989, D.C. Attorney General Irvin B. Nathan announced today.  The judgment by Superior Court Judge Brian Holeman upholds the District’s claims that Peaceoholics and Abraham improperly diverted, for personal unauthorized uses, District grant funds, which were intended to support youth anti-violence services, and holds them liable for the full amount of damages that the District sought.   

The District’s lawsuit was filed in June 2013 against Peaceoholics, Abraham, and Peaceoholics co-founder and former Chief Operating Officer Ronald Moten.  The case seeks to recover over $178,000 that Peaceoholics obtained in D.C. grant funds as a result of an application that falsely underreported the amounts of compensation and reimbursement that Peaceoholics had previously paid to Abraham and Moten.  The suit also seeks to recover over $100,000 in additional District grant funds that the District alleges the defendants unlawfully diverted from youth services programs in order to purchase two luxury sports utility vehicles for Abraham and a certificate of deposit for Peaceoholics’ investment purposes.  

Abraham and Peaceoholics failed to respond to the District’s case in court, resulting in entry of a default judgment against them.  The District presented to the Court evidence of the District’s damages attributable to Abraham and Peaceoholics in an ex parte proof hearing in October 2013.  In an order entered concurrently with the judgment, Judge Holeman held that the District had established its claims against Abraham and Peaceoholics.  Damages under the District’s False Claims Act are trebled, which resulted in a total judgment of $638,989.50 in favor of the District.    

The District’s case against Moten continues in D.C. Superior Court.      

Attorney General Nathan said, “This judgment shows that persons who receive District grants and use these funds other than for the intended purposes or for their personal benefit, will be held fully accountable.  They will not avoid the consequences of their actions by ignoring the District’s lawsuits. We will do all we can to execute the judgment, which will remain in the public record should Peaceoholics or its operatives seek any additional government grants in the future.”  

The Attorney General commended Ellen Efros, Deputy Attorney General for the Public Interest Division, Bennett Rushkoff, chief of the division’s Public Advocacy Section, and Assistant Attorneys General Catherine Jackson and Nicholas Bush for their work on the case.

CPPA