Lawsuit Alleges D.C. Grant Money Went to Strip Club

WASHINGTON – A District of Columbia nonprofit is accused in a lawsuit of using money from the district's HIV/AIDS program to renovate a warehouse that's now a strip club.

The lawsuit was filed Tuesday by D.C. Attorney General Irvin Nathan. It alleges that Miracle Hands, Inc., and its executive director, Cornell Jones, improperly diverted nearly $330,000 in grant money for renovation work at two warehouses.

The complaint says Miracle Hands represented that one of the warehouses would be converted into a job-training facility for people with HIV or AIDS. Instead, it opened in 2010 as the Stadium Club, which describes itself as a "premier gentleman's club" that also offers "five-star dining."

The lawsuit seeks damages and penalties of more than $1 million. Court records do not list an attorney for Jones.