INTHESUPERIORCOURTOFTHEDISTRICTOFCOLUMBIACIVILDIVISION

DISTRICTOFCOLUMBIA,amunicipalcorporation,4414thStreet,N.W.Washington,D.C.20001,Plaintiff,

MIRACLEHANDS,INC.,aDistrictofColumbianon-profitcorporation,2127QueensChapelRoad,N.E.Washington,D.C.20018,andCORNELLJONES,2127QueensChapelRoad,N.E.Washington,D.C.20018,Defendants.

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CivilActionNo.:

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COMPLAINTFORRELIEFUNDERFALSECLAIMSACTANDCOMMONLAW

Plaintiff,theDistrictofColumbia(the"District"),byitsAttorneyGeneral,allegesasfollows:1.TheDistrictfilesthisComplaint(i)toobtainamonetaryjudgmentagainstDefendantsMiracleHands,Inc.("MiracleHands")andCornellJones("Jones")forthreetimestheamountofdamagesthattheDistrictsustainedbecauseofDefendants'repeatedviolationsoftheFalseClaimsAct,D.C.OfficialCode§2-308.14,pluscostsandcivilpenalties,and(ii)toobtainamonetaryjudgmentagainstDefendantsforthecommonlawclaimsofconversionandunjustenrichment.

2.BysubmittingfalseexpenditurereportstoaDistrictagency,Defendantswrongfullyobtained$329,653ingrantfundsthathadbeendesignatedforservicestoD.C.residentswith

HIV/AIDS.

Ofthisamount,$190,167.78waspaidbytheDistricttoreimburseMiracleHandsforthecostofrenovationstoaformerwarehouse,ownedbyacompanycontrolledbyJones,thatMiracleHandshadrepresentedwouldbeconvertedtoajobtrainingfacilityforindividualswithHIV

AIDS.Thebuildingwasinfactconvertedtoandisnowoperatedasanightclub.

Jurisdiction

3.TheCourthasjurisdictionoverthesubjectmatterofthiscasepursuanttoD.C.OfficialCode§11-921(a)(6)and§2-308.15(a)(2001).ThisCourthaspersonaljurisdictionovertheDefendantspursuanttoD.C.OfficialCode§§13-422and13-423(a)(I)and(a){2)(2001).

TheParties

4.TheDistrict,amunicipalcorporationempoweredtosueandbesued,isthelocalgovernmentfortheterritoryconstitutingthepermanentseatofthegovernmentoftheUnitedStates.5.DefendantMiracleHands,anon-profitcorporation,wasorganizedintheDistrictin1998.Amongotherthings,withfundingprimarilyfromfederalorlocalgrants,MiracleHandsprovidesservicestopersonswithAcquiredImmunodeficiencySyndrome("AIDS")orHumanImmunodeficiencyVirus("HIV").6.CornellJonesisthefounderofMirac1eHandsandhasservedastheExecutiveDirectorofMiracleHandssinceitsfounding.

HOPWA

7.Stable,affordablehousingoffersanopportunityforpeoplelivingwithHIV/AIDStoaccessdrugtreatmentandsupportiveservicestoenhancethequalityoflifeforthemselvesandtheirfamilies.InresponsetothehousingneedsofpeoplelivingwithHIV/AIDS,theHousingOpportunitiesforPersonswithAIDS("HOPWA")programwascreatedin1992.UndertheHOPWAprogram,theUnitedStatesDepartmentofHousingandUrbanDevelopment(','HUD")makesgrantstostates,cities,localcommunities,andnonprofitorganizationsforprojectsthatbenefitlow-incomepersonsdiagnosedwithHIV

AIDS.Granteesarepermittedtocontractwithnonprofitsorgovernmentalhousingagencies-knownassub-granteesorprojectsponsoragencies-tocarryouteligibleactivitiesundertheHOPWAprogram.

TheDistrict'sHIV

AIDSAdministration

8.TheDistrict'sHIV

AIDSAdministration("HAA"),createdin1985andunderthedirectionoftheDirectoroftheDistrict'sDepartmentofHealth("DOH"),wasresponsibleforprovidingHIV/AIDSpreventionandcareservicesinD.C.HAAreceivedfederalgrantfundsundertheHOPWAprogramtoassisttheDistrictinprovidingservicestopersonswithHIV/AIDSandawardedsub-grantstosuchserviceprovidersintheD.C.community.In2009,theHIV/AIDS,Hepatitis,STD,andTBAdministration("HAHSTA")becamethesuccessoragencytoHAA.Fromapproximately2004toApril2008,DebraRowewasInterimDirectorofHAA'sHOPWAprogram.9.UnderHOPWAregulations,granteesare"responsibleforensuringthattheirrespectiveprojectsponsorscarryoutactivitiesincompliancewithallapplicablerequirements."24CFR