Kenneth Brewer Sr., former executive director of a nonprofit focused on revitalizing the H Street corridor, is being sued by D.C. Attorney General Brian L. Schwalb over allegations he misappropriated more than $1.25 million in charitable funds for personal gain.
The lawsuit claims Mr. Brewer quietly approved large bonuses for himself by bypassing the nonprofit’s board and internal review process, instead routing the payments through a for-profit subsidiary under his control.
“Brewer violated that legal duty, diverting $1.25 million intended to support the H Street small business community to pay himself lucrative bonuses,” Mr. Schwalb said.
“As the District’s independent Attorney General, I will always use the law to hold bad actors accountable, and will now work to recover these illegally diverted funds, and ensure that they are used for their intended purpose of fostering economic opportunity and affordable housing on and around H Street.”
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Kenneth Brewer Sr. served as executive director of both the H Street Community Development Corporation (HSCDC) and its for-profit arm, H Street Investment Corporation (HSIC), from 2010 until his retirement in June 2023.
Between 2017 and 2022, he allegedly avoided the nonprofit’s standard bonus approval process, which required external legal review and board consent. Instead, he submitted bonus requests to HSIC’s board, which authorized five payments ranging from $150,000 to $350,000, without notifying HSCDC’s board.
When the nonprofit finally discovered the 2022 bonus in April 2023, it moved to rescind the payment. Brewer, however, did not return the money and retired just two months later.
According to the complaint, Brewer also directed proceeds from the sale of HSCDC-owned properties into HSIC’s accounts, then used those funds to pay his bonuses. Under D.C. law, charitable assets cannot be redirected from their mission without court approval.
OAG alleges these actions violated nonprofit regulations and left HSCDC in a financially precarious position, undermining its core mission of supporting affordable housing and small business development.
As a nonprofit leader, Kenneth Brewer was legally obligated to act in good faith and in the best interest of HSCDC and the communities it serves. By keeping the board in the dark and diverting funds for personal enrichment, OAG says he broke that trust and the law.
This lawsuit is part of Attorney General Schwalb’s broader efforts to hold nonprofit leaders accountable. His office has recently taken similar action against:
A police oversight nonprofit director;
A PTA treasurer;
A fraternal organization accused of illegal liquor sales;
And others who misused nonprofit funds for personal gain.
Attorney General Brian L. Schwalb’s team also helped restructure the sale of the Providence Hospital campus to preserve $5 million for local healthcare.
Under the District’s Nonprofit Corporation Act, nonprofit officers must use organizational funds strictly for their stated mission. Violating that duty can lead to civil penalties and demands for restitution.
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