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Nonprofit Accused Of Using City HIV/AIDS Funds To Benefit Strip Club

By: WAMU Staff // August 31, 2011
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The Stadium Club in Northeast D.C. is operating in a building that was previously renovated by the HIV/AIDS nonprofit Miracle Hands, according to a lawsuit filed by the D.C. attorney general.
Armando Trull
The Stadium Club in Northeast D.C. is operating in a building that was previously renovated by the HIV/AIDS nonprofit Miracle Hands, according to a lawsuit filed by the D.C. attorney general.

A nonprofit organization in D.C. is being accused of using money from a city HIV/AIDS program to renovate a warehouse that's now being used as a strip club.

Miracle Hands is an organization that was supposed to reach into the poorest areas of D.C. and offer emergency housing, job training,and counseling to those dealing with HIV/AIDS.

Now, the D.C. Attorney General is accusing the group of improperly diverting nearly $330,000 in grant money to renovate two warehouses.

In a lawsuit filed Tuesday, officials say Miracle Hands told the District it would use one of the buildings on Queens Chapel Road in Northeast D.C. to house job training facilities for people with HIV/AIDS.

Instead, the building is now being used by the Stadium Club, which describes itself as a premier gentleman's club.

The suit asks for damages and penalties of more than $1 million. In a statement, Nathan said his office "will continue to be relentless in our efforts to recover government funds from those who have unjustly enriched themselves at the expense of the District of Columbia."

D.C. Attorney General's Lawsuit Against Miracle Hands

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