Go HERE to read the full article by Liz Farmer.

Excerpt:

• 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.

Read more at the Washington Examiner: http://washingtonexaminer.com/blogs/capital-land/2012/01/graham-detail-his-investigation-dc-housing-fraud/2149746#ixzz1ky0bNXQs