D.C. Seeks to Recover Nonprofit Funds Used to Renovate Strip Club

Jeffrey Anderson, Washington Times, August 30, 2011

D.C. Attorney General Irvin B. Nathan filed a false-claims complaint Tuesday against the nonprofit group Miracle Hands and its director, reformed gangster Cornell Jones, charging them with misappropriating more than $300,000 from the city’s HIV/AIDS program for renovations on a proposed job training center that instead was used to open a strip club.

The complaint, filed in D.C. Superior Court, seeks $1 million in damages and accuses Mr. Jones and Miracle Hands of unjust enrichment and submitting false expenditure reports in violation of the District’s False Claims Act. It states that Mr. Jones improperly received $329,000 in city funds for renovations at a warehouse in Northeast that now houses the Stadium Club, which advertises “Five Star Dining and a Premier Gentleman’s Club Experience.”

The funds, which originated from the Department of Housing and Urban Development and were distributed by the District’s HIV/AIDS Administration, required that the warehouse be converted into a job-training facility for people with HIV/AIDS, according to the attorney general’s office.

Yet the conversion did not occur and the job-training facility has never opened, the complaint says.

City financial records show that Miracle Hands received more than $5.8 million in D.C. funds from 2000 through February.

In January, The Washington Times reported that the Stadium Club operates with a liquor license reserved in 2007 for a blighted warehouse property at 2127 Queens Chapel Road, which Mr. Jones owned at the time and used as the Miracle Hands office. By 2009, he had leased the property to a pair of businessmen who were in the process of purchasing the liquor license and planning to open a strip club there.

In 2010, Mr. Jones, a convicted drug trafficker immortalized in the Black Entertainment Television series “American Gangster,” sold the property for $2.7 million, according to D.C. property records. The Stadium Club opened at 2127 Queens Chapel Road in March 2010.

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CornellJones.jpg

Cornell Jones

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  • Todd

    Of course he is a “reformed gangster” it is all behind him now and he should be given another chance , but all white people are guilty and need to pay “for the sins of the past”.

  • Question Diversity

    This reminds me of a similar scandal in St. Louis a long time ago, more than a decade. The local chapter of BABAA (Blacks Assisting Blacks Against AIDS) used a megabuck Federal grant to hire at least two black male strippers to perform (and a little more) in front of a class of young black men whom BABAA was supposedly handing out advice on how to avoid contracting HIV/AIDS.

  • Anonymous

    The funds, which originated from the Department of Housing and Urban Development and were distributed by the District’s HIV/AIDS Administration, required that the warehouse be converted into a job-training facility for people with HIV/AIDS…

    Not that I want to go to bat for somebody named Cornell Jones — but mightn’t a strip club be “a job-training facility for people with HIV/AIDS”?

  • Anonymous

    Remember this when the Democrats say that we can’t cut taxes, but that instead, we need to increase taxes and continue (or increase) government spending.

  • CDE

    Job training for people with AIDS? No doubt the money is better spent on the strippers.

  • sbuffalonative

    Blacks are always wondering where the money goes in their community. They rarely acknowledge that their own people are the gangsters ripping them off.

    Any money that goes to a black community seems to disappear. In Buffalo, blacks were given thousands of dollars to develop a business district and all they got were architectural sketches.

    Fredrick Law Olmsted designed a series of parks in Buffalo. One was, of course, renamed Martin Luther King Jr Park. Here is an old rendering of the park:

    http://tinyurl.com/44fzh8h

    The large circular area was a wading pool and fountain. It’s been out of commission for years. About 10 years ago, the park was given a million dollars to restore the fountain but it was never restored and no one was held accountable for the money.

    The fountain is again going to be restored. This time with 1.5 million largely from a local bank.

    In the summer, it’s going to be a fountain. In the winter, it’s going to be a skating rink. I can’t wait for the lawsuits.

  • James

    The picture posted below the article is not of Cornell Jones, but host Ving Rhames of the ‘American Gangster’ TV show.

  • flyingtiger

    Strip clubs are profitable. They do not need gov aid to open. Time for Mr. Holder to close this joint. LOL

  • Billy

    A job training center and a strip club are hardly irreconcilable.

    Having taught adolescent girls of thoe lower orders I can assure readers that a period as a stripper would be a smart career move.

  • Anonymous

    Want to see another brainless White woman? Seems she just cannot “reform” herself. We all know how most black thugs are never reformed, they just scam us.

    “Seems this “woman” is doing the same ole thing. Let us all “donate” to her charity…

    Her ultimate goal in visiting the area is research for the Global Enrichment Foundation, a charity she founded to send Somali women to university and start small businesses.

    ————————————————

    Lindhout, 30, of Canmore, Alta., was kidnapped on Aug. 23, 2008, along with Australian photojournalist Nigel Brennan and their Somali translator and driver. She was released in November 2009.

    The Albertan travelled to war-torn Somalia as a freelance reporter. She ended up locked in a shed, ankles shackled, tortured and beaten by her captors for 15 months.

    Lindhout’s latest plan for her charity is to raise $60 million to send every Somali child living in Kenyan refugee camps to school, hoping that they will better their homeland upon their return.”

    http://news.sympatico.cbc.ca/world/lindhout_returns_to_africa_after_kidnapping/c3f4d086

  • Anonymous

    I have many connections to DC and I can tell you that this type of corruption is not atypical, it is the rule of the day. It shouldn’t be surprising as it is a black-owned city with a Kenyan president acting as the American president. We are too blame in many ways. These inner-city “entrepreneurs” are just hoodlums in suits and many have murdered or been in prison before, and will be again. Why does the federal gov’t keep on giving money to these lowest of low lifes? You can insert your own answer, but DC’s schools are among the worst in the Western world, DC has the highest HIV rates in the Western world, and has one of the highest drug problems in the world, period. It is a beautiful town where the whites are, but where the Arabs, blacks, and Mexicans dominate, it is absolutely hellish.

  • Mr.White

    7 — James wrote at 11:03 PM on September 1:

    “The picture posted below the article is not of Cornell Jones, but host Ving Rhames of the ‘American Gangster’ TV show.”

    —————————————————————

    And the difference would be?

  • rjp

    Do a 501c3 search on any city with a majority black population and you will be floored by the results.

    There’s a text exenpt org on every corner and a couple times in the middle of the block.