Washington Examiner: Graham to detail his investigation into D.C. housing fraud

Go HERE to read the full article by Liz Farmer.

Excerpt:

ome of the details Graham will discuss are:

The building in question, 1300 Congress Street SE, was added to the housing deal after Council approved other buildings. Owner Edward Wilson sells property to deal for $399,000 — he had paid $51,000 at a foreclosure sale only five months earlier.
In 2010 — after efforts at bank financing fail allegedly because Peaceoholics could not produce financial statements — Wilson loans the project $1.6 million at above-market interest rates (18 percent if default) so that Congress Street can be made usable.
Assessed value of new Meigs Place condos soars in the middle of tax year 2009 from $541,000 to $2.5 million. LLC owners sell to Peaceoholics for $2.35 million. "Why didn’t Peaceoholics buy a less expensive rental building ready for tenants?" Graham asks.
Deal falls apart in September 2010. By January 2011, a foreclosure notice is issued to Wilson on the $1.6 million construction loan asking for about $140,000 payment in order to stop that action. DHCD in a Feb. 8, 2011 memo signed by the Acting Director, puts together some $937,000 for property owner Wilson.

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