Lawsuit claims Women in HEELS diverted $250K of grant money for personal use

DC AG sues nonprofit over misuse of funds

D.C. Attorney General Brian L. Schwalb announced a lawsuit Thursday against Women in H.E.E.L.S. (Healing, Elevation, Empowerment, Love, Support), Inc. and its former CEO, Ikeia Hardy, accusing them of misusing more than $250,000 in government grant funding.

WASHINGTON - D.C. Attorney General Brian L. Schwalb announced a lawsuit Thursday against Women in H.E.E.L.S. (Healing, Elevation, Empowerment, Love, Support), Inc. and its former CEO, Ikeia Hardy, accusing them of misusing more than $250,000 in government grant funding. 

What we know:

The nonprofit was selected in 2022 to run a Cure the Streets program site in Congress Heights. Through a competitive grant process, the organization was awarded up to $814,000 annually in fiscal years 2022 and 2023 to support local gun violence prevention work. 

According to the lawsuit, the Office of the Attorney General (OAG) alleges that funds meant for public safety were diverted for personal use and never properly accounted for. In 2023, after discovering financial irregularities, OAG terminated the group’s grant. 

The city demanded the return of more than $200,000 in unspent or undocumented funds, which were never repaid. The lawsuit also claims Hardy transferred over $57,000 from the nonprofit’s accounts into her personal bank account. 

In addition, the organization lost its federal tax-exempt status after failing to file required forms and is accused of violating city rules by contracting with a business connected to one of its employees. 

What they're saying:

"This organization and its former CEO misused grant funds intended to keep District residents safe—taking advantage of taxpayers and undermining gun violence prevention efforts in Congress Heights," Schwalb said in a statement. "We are seeking to recover the misappropriated funds and ensure they are redirected toward public safety efforts in the District." 

"This is an ongoing legal matter, so I cannot speak in detail at this time. What I can say is that the allegations are misleading. With all the challenges surrounding violence interruption and public safety, I’ve become an easy target. I stand by my work and my integrity, and I look forward to having my day in court to resolve this matter and clear my name," said Ikeia Hardy to FOX 5 in a statement. 

What's next:

The case is being handled by Assistant Attorneys General Leonor Miranda and Cara Spencer, under the supervision of Adam Gitlin, Chief of the Antitrust and Nonprofit Enforcement Section.