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.
Virginia
Va. Senate committee approves resolution to repeal marriage amendment
Outgoing state Sen. Adam Ebbin introduced SJ3
The Virginia Senate Privileges and Elections Committee on Wednesday by a 10-4 vote margin approved a resolution that seeks to repeal a state constitutional amendment that defines marriage as between a man and a woman.
Outgoing state Sen. Adam Ebbin (D-Alexandria) introduced SJ3.
Same-sex couples have been able to legally marry in Virginia since 2014. Republican Gov. Glenn Youngkin in 2024 signed a bill that codified marriage equality in state law.
A resolution that seeks to repeal the Marshall-Newman Amendment passed in the General Assembly in 2021. The resolution passed again in 2025.
Two successive legislatures must approve the resolution before it can go to the ballot. Democrats in the Virginia House of Delegates have said the resolution’s passage is among their 2026 legislative priorities.
Virginia
Mark Levine loses race to succeed Adam Ebbin in ‘firehouse’ Democratic primary
State Del. Elizabeth Bennett-Parker won with 70.6 percent of vote
Gay former Virginia House of Delegates member Mark Levine (D-Alexandria) lost his race to become the Democratic nominee to replace gay state Sen. Adam Ebbin (D-Alexandria) in a Jan. 13 “firehouse” Democratic primary.
Levine finished in second place in the hastily called primary, receiving 807 votes or 17.4 percent. The winner in the four-candidate race, state Del. Elizabeth Bennett-Parker, who was endorsed by both Ebbin and Gov.-elect Abigail Spanberger received 3,281 votes or 70.6 percent.
Ebbin, whose 39th Senate District includes Alexandria and parts of Arlington and Fairfax Counties, announced on Jan. 7 that he was resigning effective Feb. 18, to take a job in the Spanberger administration as senior advisor at the Virginia Cannabis Control Authority.
Results of the Jan. 13 primary, which was called by Democratic Party leaders in Alexandria, Arlington, and Fairfax, show that candidates Charles Sumpter, a World Wildlife Fund director, finished in third place with 321 voters or 6.9 percent; and Amy Jackson, the former Alexandria vice mayor, finished in fourth place with 238 votes or 5.1 percent.
Bennett-Parker, who LGBTQ community advocates consider a committed LGBTQ ally, will now compete as the Democratic nominee in a Feb. 10 special election in which registered voters in the 39th District of all political parties and independents will select Ebbin’s replacement in the state senate.
The Alexandria publication ALX Now reports that local realtor Julie Robben Linebery has been selected by the Alexandria Republican City Committee to be the GOP candidate to compete in the Jan. 10 special election. According to ALX Now, Lineberry was the only application to run in a now cancelled special party caucus type event initially called to select the GOP nominees.
It couldn’t immediately be determined if an independent or other party candidate planned to run in the special election.
Bennett-Parker is considered the strong favorite to win the Feb. 10 special election in the heavily Democratic 39th District, where Democrat Ebbin has served as senator since 2012.
District of Columbia
Ruby Corado sentenced to 33 months in prison
Former Casa Ruby director pleaded guilty to wire fraud in 2024
A federal judge on Jan. 13 sentenced Ruby Corado, the founder and former executive director of the now closed D.C. LGBTQ community services organization Casa Ruby, to 33 months of incarceration for a charge of wire fraud to which she pleaded guilty in July 2024.
U.S. District Court Judge Trevor M. McFadden handed down the sentence that had been requested by prosecutors with the Office of the U.S. Attorney for the District of Columbia after Corado’s sentencing had been postponed six times for various reasons.
The judge also sentenced her to 24 months of supervised release upon her completion of incarceration.
In addition to the sentence of incarceration, McFadden agreed to a request by prosecutors to hold Corado responsible for “restitution” and “forfeiture” in the amount of $956,215 that prosecutors have said she illegally misappropriated from federal loans obtained by Casa Ruby.
The charge to which she pleaded guilty is based on allegations that she diverted at least $180,000 “in taxpayer backed emergency COVID relief funds to private offshore bank accounts,” according to court documents.
Court records show FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Md., shortly after she returned to the U.S. from El Salvador, where authorities say she moved in 2022. Prosecutors have said in charging documents that she allegedly fled to El Salvador, where she was born, after “financial irregularities at Casa Ruby became public,” and the LGBTQ organization ceased operating.
Shortly after her arrest, another judge agreed to release Corado into the custody of her niece in Rockville, Md., under a home detention order. But at an Oct. 14, 2025, court hearing at which the sentencing was postponed after Corado’s court appointed attorney withdrew from the case, McFadden ordered Corado to be held in jail until the time of her once again rescheduled sentencing.
Her attorney at the time, Elizabeth Mullin, stated in a court motion that her reason for withdrawing from the case was an “irreconcilable breakdown in the attorney-client relationship.”
Corado’s newly retained attorney, Pleasant Brodnax, filed a 25-page defense Memorandum in Aid of Sentencing on Jan. 6, calling for the judge to sentence Corado only to the time she had already served in detention since October.
Among other things, Brodnax’s defense memorandum disputes the claim by prosecutors that Corado improperly diverted as much as $956,215 from federally backed loans to Casa Ruby, saying the total amount Corado diverted was $200,000. Her memo also states that Corado diverted the funds to a bank account in El Salvador for the purpose of opening a Casa Ruby facility there, not to be used for her personally.
“Ms. Corado has accepted responsibility for transferring a portion of the loan disbursements into another account she operated and ultimately transferring a portion of the loan disbursements to an account in El Salvador,” the memo continues.
“Her purpose in transferring funds to El Salvador was to fund Casa Ruby programs in El Salvador,” it says, adding, “Of course, she acknowledges that the terms of the loan agreement did not permit her to transfer the funds to El Salvador for any purpose.”
In his own 16-page sentencing recommendation memo, Assistant U.S. Attorney John Borchert, the lead prosecutor in the case, said Corado’s action amounted at the least to fraud.
“The defendant and Casa Ruby received no less than $1.2 million in taxpayer backed funds during the COVID-19 global health crisis,” he memo states. “But rather than use those funds to support Casa Ruby’s mission as the defendant promised, the defendant further contributed to its demise by unlawfully transferring no less than $180,000 of these federal emergency relief funds into her own private offshore bank accounts,” it says.
“Then, when media reports suggested the defendant would be prosecuted for squandering Casa Ruby’s government funding, she sold her home and fled the country,” the memo states. “Meanwhile, the people who she had promised to pay with taxpayer-backed funds – her employees, landlord, and vendors – were left behind flat broke.”
A spokesperson for the U.S. Attorney’s office and Corado’s attorney didn’t immediately respond to a request from the Washington Blade for comment on the judge’s sentence.
“Ms. Corado accepts full responsibility for her actions in this case,” defense attorney Brodnax says in her sentencing memo. “She acknowledges the false statements made in the loan applications and that she used some of the money outside the United States,” it says.
“However, the money was still utilized for the same purpose and intention as the funds used in the United States, to assist the LGBTQ community,” it states. “Ms. Corado did not use the money to buy lavish goods or fund a lavish lifestyle.”
Brodnax also states in her memo that as a transgender woman, Corado could face abuse and danger in a correctional facility where she may be sent if sentenced to incarceration.
“Ruby Corado committed a crime, she is now paying the price,” said D.C. LGBTQ rights advocate Peter Rosenstein. “While it is sad in many ways, we must remember she hurt the transgender community with what she did, and in many ways they all paid for her crime.”
