Local
Trans group struggles with financial crisis
T.H.E. hit by IRS tax liens, possible suspension of city funds

Longtime activist Earline Budd is reportedly among THE staffers experiencing problems getting paid. (Blade file photo by Michael Key)
Transgender Health Empowerment, a non-profit group that has provided a wide range of services for D.C.’s transgender community for more than a decade, is struggling with a financial crisis that has prevented it from paying its employees on time and has triggered staff layoffs and resignations, according to multiple sources familiar with the organization.
Public records at the D.C. Recorder of Deeds office show that the IRS filed at least 10 liens against THE over the past three-and-a-half years. Most are due to THE’s failure to pay employee payroll taxes, the records show.
Sources familiar with the situation say the liens prompted the D.C. Department of Health to suspend some or all of its funding for THE for HIV/AIDS-related services. The funding suspension reportedly was triggered by a procurement rule that restricts city funding for vendors or contractors that are in violation of the law, including federal tax law, the sources said.
A former THE employee and current client said they each were told by THE staffers that a delay in city funding forced the group to cut back on its drop-in services at its headquarters at 1414 North Capitol Street, N.W., and to limit services to clients by appointment only.
“The whole month of March we didn’t get a paycheck,” said the former employee, who was laid off in April because of THE’s financial problems, the former employee told the Blade.
Among THE employees not getting paid or getting paid late are THE official and longtime transgender activist Earline Budd, THE Director of Programs Brian Watson, and transgender activist Jeri Hughes, sources familiar with the group said.
Top officials with THE and the Department of Health have not responded to repeated requests by the Blade for information about the cause of THE’s financial problems and the status of city funding for the group.
“At this particular time, there’s no comment,” Brian Devine, THE’s finance manager, told the Blade. Devine said THE Executive Director Anthony Hall also had no comment.
“We just had a board meeting and that was one of the issues we spoke of,” said Devine, adding that the board decided not to issue a statement about the situation at the present time.
DOH spokesperson Najma Roberts said she would make inquiries about the THE funding status when contacted by the Blade last week. As of press time this week she had not responded.
The Blade filed a Freedom of Information Act request with the DOH deputy general counsel, Phillip Husband, on April 3 seeking the information that the department has yet to release through Roberts, the press spokesperson. Husband said the department usually takes up to 15 business days to respond to a FOIA request.
“My biggest concern is THE’s clients,” said transgender activist Ruby Corado, director of Casa Ruby, an LGBT community center in Columbia Heights that caters to the Latino and transgender communities.
Corado said some of THE’s clients have been coming to Casa Ruby after being told that THE’s drop in center had curtailed its services.
Corado and other transgender activists called THE the D.C. area’s preeminent service provider and advocate for the transgender community.
They note that THE also operates the city’s only housing facility dedicated to homeless LGBT youth. The facility known as the Wanda Alston House has been nationally recognized as an innovative resource for LGBT youth that offers counseling, employment and vocational training, and other services.
Among THE programs funded by DOH is its highly acclaimed Comprehensive Risk Counseling Services or CRSC program, which offers risk reduction interventions for preventing HIV infection among transgender people, especially transgender women, whom experts say are at high risk for HIV. THE also offers HIV testing and counseling.
“THE is a transgender institution for D.C.,” Corado said. “There are a lot of people counting on its services, especially those living with HIV. It is an organization that cannot go away,” she said.
“So the question I have is what is the Department of Health doing about this,” Corado said. “Why aren’t they talking about what happens to those clients? Are those clients OK?”
Transgender activist Alexandra Beninda, who serves on the D.C. Human Rights Commission, was among those who praised THE for its work in the transgender community but said she was unaware that the group was having financial problems.
She said she hoped the community would rally in support of THE but expressed concern that news of the group’s problems had not gotten out to those who might be willing to help.
Mara Keisling, executive director of the D.C.-based National Center for Transgender Equality, said she, too, was unaware of the THE financial problems.
“They are the centerpiece for local transgender efforts,” Keisling said.
Records of the IRS liens against THE filed with the D.C. Recorder of Deeds show that between March 2010 and earlier this year the group owed the IRS a total of $260,075. The records don’t show how much of that amount was for unpaid taxes and how much, if any, was for interest and penalties.
The records show that THE has since made payments of $91,912 to pay off the back taxes and currently owes the IRS $168,163.
As a non-profit, tax-exempt organization, THE doesn’t pay taxes on its income from donors or from government grants and contracts. The records indicate that most of the money owed is for employee payroll taxes.
Due to THE’s refusal to comment on the matter it couldn’t immediately be determined what caused the underlying financial problems that prevented THE from paying its employee payroll taxes.
Ron Simmons, executive director of the D.C. AIDS service group Us Helping Us, which also receives city funding, said smaller community based groups like THE sometimes encounter cash flow problems when the city takes too long to reimburse the group for its services. He said DOH in the past has taken 90 days or longer to reimburse vendors and service providers.
“Among other things, they are the only LGBT homeless shelter for youth,” Simmons said. “We absolutely can’t let them go under,” he said of THE.
THE’s most recently filed IRS 990 finance report that is available for public viewing is for the fiscal year of Oct. 1, 2009 through Sept. 30, 2010.
The report shows that THE’s income for the year was $960,834 and its expenses came to $1,093,816, with a deficit of $132,982.
District of Columbia
Judge issues revised order in Capital Pride stalking case
Defendant Darren Pasha agreed to accept less restrictive directive
A D.C. Superior Court judge on April 30 reinstated an anti-stalking order requested by the Capital Pride Alliance against local gay activist Darren Pasha based on allegations that Pasha engaged in a year-long effort to harass, intimidate, and stalk the organization’s staff, board members, and volunteers.
The reinstated order by Judge Robert D. Okun followed an April 17 court hearing in which he rescinded a similar order he initially approved in February on grounds that more evidence was needed to substantiate the need for the order.
At the time he rescinded the earlier order he scheduled an evidentiary hearing for April 29 at which three Capital Pride staff members testified in support of the anti-stalking order. But Okun discontinued the hearing after Pasha, who was representing himself without an attorney, announced he was willing to accept a revised, less restrictive temporary restraining order.
The judge said Pasha’s decision to accept a restraining order made it no longer necessary to continue the evidentiary hearing. He then asked Capital Pride and Pasha to submit their suggested revisions for the order which they submitted a short time later.
The case began when Capital Pride Alliance, the D.C.-based LGBTQ group that organizes the city’s annual Pride events, filed a civil complaint on Oct. 27, 2025, against Pasha, accusing him of engaging in a year-long effort to harass, intimidate, and stalk Capital Pride staff, board members, and volunteers. It includes a 167-page addendum of “supporting exhibits” that includes multiple statements by unidentified witnesses.
Pasha, who has represented himself without an attorney, has argued in multiple court filings and motions that the stalking allegations are untrue. In his initial court response to the complaint, he said it appears to be a form of retaliation against him for a dispute he has had with Capital Pride and its former board president, Ashley Smith, who has since resigned from the board.
Similar to his earlier anti-stalking order against Pasha, Okun’s reissued order on April 30 states, a “Temporary Anti-Stalking Order is GRANTED, effective immediately and remaining in effect until further order of the Court or final disposition of this matter.”
It adds, “The defendant shall not contact, attempt to contact, harass, threaten, or otherwise communicate with any protected person, directly or indirectly, including through third parties, social media, electronic communication, or any other means.”
Unlike the earlier order, which did not identify the “protected persons” by name, the latest order includes a list of 34 people, 13 of whom are Capital Pride staff members or volunteers, including CEO Ryan Bos and Chief Operating Officer June Crenshaw. The other 21 people listed are identified as Capital Pride board members, including board chair Anna Jinkerson.
Possibly because Pasha addressed this in his suggested version of the order, the judge’s revised order says Pasha is allowed to visit the D.C. LGBTQ+ Community Center, where the Capital Pride office is located, if he gives the community center a 24 hour advance notice that he will be visiting the center, which hosts many events unrelated to Capital Pride. The earlier order required him to stay at least 100 feet away from the Capital Pride office.
The new order also prohibits Pasha from attending 21 named events that Capital Pride Alliance either organizes itself or with partner organizations that were scheduled to take place from April 30 through June 21. The order says he is allowed to attend the two largest events, the June 20 Pride Parade and the June 21 Pride Festival and Concert, in which 500,000 or more people are expected to attend.
It says Pasha is also allowed to attend the June 15 Pride At The Pier event organized by the Washington Blade.
But for those three events the order says he is restricted from entering “ticketed and controlled access areas.”
At the April 29 court hearing, Okun also scheduled a mandatory remote mediation session for July 23, in which efforts would be made to resolve the civil complaint case brought by Capital Pride without going to trial.
District of Columbia
Both sides propose revised orders in Capital Pride stalking case
Defendant Darren Pasha agreed to accept less restrictive directive
An evidentiary hearing in D.C. Superior Court on April 29 in which the Capital Pride Alliance presented three of four planned witnesses to testify in support of its civil complaint that D.C. gay activist Darren Pasha engaged in a year-long effort to harass, intimidate, and stalk its staff, board members, and volunteers ended abruptly at the direction of the judge.
Judge Robert D. Okun announced from the bench that the hearing, which was intended provide Capital Pride an opportunity to present evidence in support of its request to reinstate an anti-stalking order against Pasha that the judge temporarily rescinded on April 17, was no longer needed because Pasha stated at the hearing that he is willing to accept a revised, less restrictive temporary restraining order.
Pasha made that statement after two Capital Pride witnesses — June Crenshaw and Vincenzo Volpe — each testified in support of the stalking allegations against Pasha for over an hour under questioning from Capital Pride attorney Nick Harrison and under cross-examination from Pasha, who is representing himself without an attorney.
After Capital Pride’s third witness, Tifany Royster, testified for just a few minutes, and after the judge called a recess for lunch and to attend to an unrelated case, Pasha announced that after obtaining legal advice he determined that he was unsuited to continue cross-examining the witnesses. He said he would be willing to accept a significantly less restrictive temporary restraining order.
Okun then ruled that the evidentiary hearing was no longer needed and directed Capital Pride and Pasha to submit to him their version of a revised stay away order. He said he would use their proposed revisions to help him develop his own order, which he would issue after deliberating over the matter.
He also scheduled a mandatory remote mediation session for July 23, in which efforts would be made to resolve the case without going to trial. He then adjourned the hearing at 3:50 p.m.
The online Superior Court docket for the case stated after the hearing ended that the judge would issue “a new modified Temporary Protective Order,” but it did not say when it would be issued.
Shortly before the April 29 hearing began at 11 a.m., Harrison filed a “Draft Temporary Anti-Stalking Order” that included a list of 34 “Protected Persons” that Harrison said during the hearing were affiliated with Capital Pride Alliance as staff and board members, volunteers, and others associated with the group.
The proposed order stated, “The defendant shall not contact, attempt to contact, harass, threaten, or otherwise communicate with any protected person, directly or indirectly, including through third parties, social media, electronic communications, or any other means.”
The proposal represented a significant change from Capital Pride’s initial civil complaint against Pasha filed in February that Pasha claimed called for him to stay away at least 200 yards from all Capital pride staff, board members, and volunteers without naming them. Okun granted that stay away request in February but reduced the stay away distance to 100 feet.
Capital Pride attorney Harrison disputes Pasha’s interpretation of the order, saying the 100-foot stay-away was for events, not for individual Capital Pride staff, volunteers, or board members. He said the order prohibited Pasha from engaging in any way with the Capital Pride staffers, volunteers or board members.
But the proposed order Capital Pride at first submitted at the April 29 hearing also called for Pasha to stay away from and to not attend as many as 25 Capital Pride events scheduled to take place this year from April 30 through June 21 and for him to say away from the Capital Pride office located at 1827 Wiltberger St., N.W., which is the building in which it shares with the DC LGBTQ Community Center.
At the April 29 hearing, at Pasha’s request, Okun called on Capital Pride to consider allowing Pasha to attend at least the two largest events — the Capital Pride Parade and Festival — which draw over 500,000 participants.
Harrison said in a follow-up message to the judge following the hearing that Capital Pride would allow Pasha to attend those two events and one other as long as he stays away from “ticketed and controlled access areas.”
At an April 17 status hearing Okun rescinded the earlier stay away order at Pasha’s request, among other things, on grounds that it was too vague and didn’t provide Pasha with sufficient specific information on who to stay away from. It was at that hearing that Okun scheduled the April 29 evidentiary hearing, saying it would give Capital Pride a chance to provide sufficient evidence to justify an anti-stalking order and Pasha an opportunity to challenge the evidence.
In his own response to the initial civil complaint filed in February and in subsequent court filings, Pasha has strongly denied he engaged in stalking and has alleged that the complaint was a form of retaliation against him over a dispute he has had with Capital Pride and its former board president, Ashley Smith.
Like its initial complaint filed in February, Capital Pride filed a multipage document at the start of the April 29 hearing with written testimony from staff members and volunteers who allege that Pasha did engage in stalking, harassment, and intimidating behavior toward them and others.
Like Capital Pride, Pasha following the April 29 hearing, filed his own proposed version of the stay away order with significantly less restrictions than the Capital Pride proposal. Among other things, it calls for him to restrict his contact with Capital Pride CEO Ryan Bos and Crenshaw but says it “does not by its terms restrict the defendant’s communications with any other person, entity, governmental body, or media outlet.”
“Darren Pasha sent multiple messages to us and to the court after the proceedings asking for further modifications — which we are not accepting or responding to,” Harrison told the Blade in response to a request for further comment on Judge’s request for each side to submit proposed revisions of the stay away order.
“We appreciate the court’s time and careful attention to the evidence presented today,” Harrison told the Washington Blade in a written statement after the hearing. “This process was about bringing forward the experiences of individuals who reported a pattern of conduct that caused fear, serious alarm, and emotional distress,” he said.
“Capital Pride Alliance remains committed to ensuring that our events and community spaces are safe, welcoming, and free from harassment and we will continue to take appropriate steps to support and protect our community,” his statement says.
“I am happy with what we have accomplished so far,” Pasha told the Blade after the hearing. “I’m just waiting to see what will happen next. But I want to reiterate this goes back to when someone treats you wrong you speak up,” he said. “Even if I lose this case, I am glad that I spoke up and raised concerns.”
He added, “I will just be confident that in the next couple of months the truth will come out. But for now, I am happy with the progress that we have made regarding this.”
This story will be updated when the judge issues his revised stay away order.
Rehoboth Beach
Rehoboth’s Blue Moon sold; new owners to preserve LGBTQ legacy
‘They don’t want to change a thing’
The iconic Blue Moon restaurant and bar in Rehoboth Beach, Del., has been sold to new owners who have pledged to keep it an LGBTQ-affirming space, according to longtime owner Tim Ragan.
Ragan and his partner Randy Haney sold the Blue Moon to Dale Lomas and Mike Subrick, owners of Atlantic Liquors on Route 1.
“They don’t want to change a thing,” Ragan said. “They’re local people, they live here. Dale worked his first job at Dolle’s.”
Ragan and Haney did not sell the business, only the real estate. The deal includes a 10-year lease with renewal options under which Ragan and Haney will continue to operate the Moon. He noted that the couple could opt to sell the business at any time.
“It’s going really well so I’m not in any hurry,” Ragan told the Blade. “It’s hard to run a business and manage a property that’s 120 years old — now someone else has to fix the air conditioning. Our responsibility will be to run the business.”
Ragan offered reassurances that the Moon will continue to be a gay-friendly destination.
“Dale’s comment was that Rehoboth has been good to us and we just want to give back. The Moon is part of Rehoboth’s history and we want to preserve that.”
He said there are no immediate changes planned for the structure, apart from a new roof in the atrium that was damaged in a hail storm. Ragan noted that the property comes with several apartment rental licenses that they have never exercised and the new owners may decide to rent those out.
The Blue Moon business, at 35 Baltimore Ave., dates to 1981 and is an integral part of Rehoboth’s LGBTQ community, hosting countless entertainment events, drag shows, and more over 45 years. Local residents have celebrated birthdays, anniversaries, weddings, and other special occasions in the acclaimed restaurant.
The two buildings associated with the sale were listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They were listed for $4.5 million. The bar and restaurant business were being sold separately.
But then, earlier this year, the Blue Moon real estate listing turned up on the Sussex County Sheriff’s Office auction site. The auction was slated for Tuesday, April 21 but hours before the sale, the listing changed to “active under contract” indicating that a buyer had been found but the sale was not yet final.
Ragan said the issue was the parties couldn’t resolve how much was owed due to a disagreement with the bank. “We didn’t owe $3 million,” he said. “We said we’re not paying any more until we sell.”
The sale contract was written five months ago. It took three attorneys to get a payoff amount agreed to by the bank, he added.
“No one wanted to buy both things. We now have a longterm lease. We couldn’t be happier.”
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