DC Attorney General recovered $2.655 million from three enforcement actions | The Locally Times
Settlements finalized between May 7 and June 1, 2026, resolved tax evasion, nonprofit fund misuse, and construction defects.
The District of Columbia Office of the Attorney General (OAG) collected $2.655 million in settlements and judgments between May 7 and June 1, 2026. These actions involved the DC False Claims Act, which allows the District to recover funds when entities avoid tax obligations or misappropriate public assets. ## Tax and Nonprofit Settlements On June 1, 2026, the OAG settled for $1 million with Toskr, Inc., a peer-to-peer text messaging firm operating as GetThru. The settlement resolved allegations that the company failed to collect and pay DC sales tax on data processing services for 10 years. The agreement requires the company to comply with District tax collection requirements for future sales. On May 13, 2026, the OAG secured a $1.255 million judgment against Kenneth Brewer, Sr., the former executive director of the H Street Community Development Corporation. The judgment followed a 2025 lawsuit alleging that Brewer diverted nonprofit funds to pay himself unauthorized annual bonuses. ## Construction and Safety On May 7, 2026, developer Steven Sushner agreed to pay $400,000 to fund repairs for a Ward 4 condominium building. An OAG investigation determined the building lacked sufficient structural supports, causing the structure to sway. The funds provide capital for residents to repair the safety defects. ## Ongoing Litigation The OAG continues to pursue a lawsuit filed on April 30, 2026, against Sequoia Row Consulting, LLC and its CEO, Paul Lawrence. The suit alleges the firm fraudulently secured over $13 million in contracts through the Certified Business Enterprise program, a city initiative that provides contracting preferences to local, small, and disadvantaged businesses. ## Investigation and Reporting The GetThru settlement originated from a whistleblower complaint filed under the DC False Claims Act. The OAG conducted an independent investigation following the complaint. The records do not specify how the recovered $2.655 million will be reallocated into the District's general fund or specific public service budgets. Additionally, the records do not quantify the total outstanding loss to the District from other ongoing investigations or the number of contractors currently under audit for similar fraud. Residents may report fraud against the District to ReportFraud@dc.gov and nonprofit mismanagement to nonprofit@dc.gov. ## Key Questions **How much money did the Attorney General recover in total?** The Office of the Attorney General secured $2.655 million through three separate settlements and judgments finalized between May 7 and June 1, 2026. **What are the funds being used for?** The records do not specify how the recovered funds will be reallocated into the District's general fund or specific public services. **How can I report suspected fraud?** Residents can report suspected fraud against the District to ReportFraud@dc.gov and nonprofit mismanagement to nonprofit@dc.gov.