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DC trans group files for bankruptcy

T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

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Earline Budd, T.H.E., Transgender Health Empowerment, gay news, Washington Blade
Earline Budd, gay news, gay politics dc

Transgender activist and one of DC trans group T.H.E.’s founders, Earline Budd, is owed $4,615 in back wages. (Washington Blade file photo by Michael Key)

Transgender Health Empowerment, which has been recognized as D.C.’s preeminent organization advocating for and providing services to the transgender community since 2004, filed for Chapter 11 bankruptcy on July 7.

The 56-page bankruptcy filing came two months after the D.C. government revoked or suspended most of its contracts and grants for T.H.E.  The cut off in funds came after D.C. officials learned the IRS filed tax liens against the group seeking to recover more than $260,000 in unpaid payroll taxes, possibly including penalties, that accumulated since 2008.

D.C. Mayor Vincent Gray, who praised T.H.E.’s work on behalf of the LGBT community, said the city was forced to withdraw its funding for the group under a “clean hands” policy that bars city funding for vendors and service providers found to be in violation of the law, including federal and local tax laws.

LGBT activists familiar with the group have said it ceased most of its operations and laid off nearly all of its employees at the time the city cut off its funding for the group.

T.H.E.’s bankruptcy filing with the United States Bankruptcy Court for the District of Columbia shows it has total remaining assets of $37,009 and liabilities totaling $566,544.26.

The filing identifies the IRS as the single largest creditor, showing the group owes $264,247.91 in employee federal payroll taxes between 2008 and 2013. The filing shows T.H.E. owes the D.C. government $22,485 in employee withholding taxes and $15,663 in D.C. “unemployment” taxes.

The group owes the State of Maryland $8,695 in “employment taxes/withholding” for 2012 and 2013, according to the bankruptcy filing.

Under the U.S. bankruptcy law, a Chapter 11 filing allows a business or organization to obtain temporary relief from paying its creditors while it reorganizes its corporate structure and works out a plan with creditors to eventually repay the debt.

Records filed with the bankruptcy court show that a meeting of creditors is scheduled to take place at the court, located at 333 Constitution Ave., N.W., at 3 p.m. on Aug. 8.

In a press release issued on Wednesday, T.H.E. discussed its financial problems for the first time since news of its money problems surfaced earlier this year.

“Transgender Health Empowerment (T.H.E.), a non-profit group that has provided a wide range of services for D.C.’s TGLB (Transgender, Gay, Lesbian and Bisexual) HIV+ and homeless community since 2004 has been struggling with financial challenges that have prompted us to curtail some services and suspend others,” the press release says.

“Communicating with our community and clients is of utmost importance to the Board of Directors, along with overseeing solid organization recovery,” it says.

The release, however, makes no mention of the bankruptcy filing, saying only, “Our renewed goal is to protect the organization financially to ensure that programs and services that are being provided have adequate support and to ensure that the actions of those we entrust adhere to the policies and direction set by the Board of Directors.”

Although T.H.E. has not published the names of its board members since its website was shut down earlier this year, the bankruptcy filing identifies 11 people as current board members. Among those identified as board members in the filing is D.C. Council member Jim Graham (D-Ward 1).

However, Graham told the Blade on Tuesday that he is not now and has never been a T.H.E. board member. Instead, Graham said he has served on a T.H.E. advisory committee.

The filing identifies Rhonda Steward as interim chair of the board, Marjorie Borders as secretary and Rodney Pierce as treasurer. Gay Democratic activist Bradley Lewis is listed as a member of the board.

The T.H.E. press release, which appears to have been issued by the board, doesn’t mention the role the group’s executive director for over five years, Anthony Hall, will play in the reorganization.

Hall and other T.H.E. officials have declined to respond to requests by the Blade since May for an explanation of the root causes of the organization’s financial problems.

A document obtained by the Blade from the D.C. Department of Health through a Freedom of Information Act request, says the DOH decided in early May to discontinue its funding for T.H.E. after learning that the IRS had filed tax liens against the group and its financial prospects were grim.

The April 24 document, identified as a Programmatic Site Visit Report, says Hall told DOH officials during their visit to T.H.E.’s headquarters at 3339 10th Place, S.E., that much of the group’s financial problems stemmed from outstanding debts with the IRS and D.C. and Maryland tax offices related to unpaid payroll withholding taxes.

“This, he mentioned, was the result of incorrect filings of successive accountants,” the DOH report says. “He has since contracted with Wells Fargo Bank to manage the organization’s payroll and remit all withholdings and related tax obligations.”

But according to the report, “T.H.E. has no cash on hand and does not appear to have a realistic chance of working out a resolution with the IRS…Many of their staff has already been laid off and a limited few are volunteering to perform limited duties,” it says.

“Their clients are already impacted and have limited or no servicers…In all practicality, T.H.E. has already shut their doors and cannot even be paid were they to invoice further.”

The report recommended that all DOH sub-grants “be suspended immediately and appropriate providers identified to provide the services.”

Among the other creditors listed in the bankruptcy filing are 23 mostly former employees who are owed back wages ranging from between $3,000 and just over $5,000. Included among them are longtime transgender activist and one of T.H.E.’s founders, Earline Budd, who is owed $4,615 in back wages. Gay activist Brian Watson, who has served as a T.H.E. program officer, is owed $5,653, according to the bankruptcy filing.

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District of Columbia

Deon Jones speaks about D.C. Department of Corrections bias lawsuit settlement

Gay former corrections officer says harassment, discrimination began in 1993

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Deon Jones (Photo courtesy of the American Civil Liberties Union)

Deon Jones says he is pleased with the outcome of his anti-gay bias lawsuit against the D.C. Department of Corrections that ended after five years on Feb. 5 with the D.C. government paying him $500,000 in a settlement payment.

The lawsuit, filed on his behalf by the American Civil Liberties Union of D.C. and the law international law firm WilmerHale, charged that Jones, a Department of Corrections sergeant, had been subjected to years of discrimination, retaliation, and a hostile work environment because of his identity as a gay man in clear violation of the D.C. Human Rights Act.

A statement released by the ACLU at the time the settlement was announced says Jones, “faced years of verbal abuse and harassment, from co-workers and incarcerated people alike, including anti-gay slurs, threats, and degrading treatment.”

The statement adds, “The prolonged mistreatment took a severe toll on Jones’s mental health, and he experienced depression, post-traumatic-stress disorder, and 15 anxiety attacks in 2021 alone.:

Jones said the harassment and mistreatment he encountered began in 1993, one year after he first began work at the Department of Corrections and continued for more than 25 years under six D.C. mayors, including current Mayor Muriel Bowser, who he says did not respond to his repeated pleas for help.

Each of those mayors, including Bowser, have been outspoken supporters of the LGBTQ community, but Jones says they did not intervene to change what he calls the homophobic “culture” at the Department of Corrections.

The Department of Corrections, through the Office of the D.C. Attorney General, which represents city agencies against lawsuits, and the mayor’s office, have so far declined to comment on the lawsuit and the half million-dollar settlement the city offered to Jones, who accepted it.

Among other things, the settlement agreement states that Jones would be required to resign from his job at the Department of Corrections. It also declares that “neither the parties’ agreement nor the District government’s offer to settle the case shall in any way be construed as an admission by the District that it or any of its current or former employees, acted wrongfully with respect to plaintiff or any other person, or that plaintiff has any rights.”

Scott Michelman, the D.C. ACLU’s legal director said that type of disclaimer is typical for parties that agree to settle a lawsuit like this. He said the city’s action to pay Jones a half million-dollar settlement “speaks louder than words.”   

With that as a backdrop, Jones reflected on the settlement and what he says was his tumultuous 30-year career as an employee at the D.C. Department of Corrections in a Feb. 9 interview with the Washington Blade.

He and Michelman pointed out that Jones was placed on paid administrative leave in April 2022, one year after his lawsuit was filed. Among his upcoming plans, Jones told the Blade, is to publish a podcast that, among other things, will highlight the hardship he faced at the Department of Corrections and advocate for LGBTQ rights.   

BLADE: What are your thoughts on this lawsuit settlement which appears very much in your favor?

JONES: That’s great. I’m happy. I’m glad to resign. It’s been a long time coming. It was the worst time it’s ever been. And I have advocated for the community for many, many years. And not only standing up for my rights but for the rights for others in the LGBTQ community.

And I’m just tired now. And my podcast will start soon. And I will continue to advocate for the community.

BLADE: Can you tell a little about that and when it will begin?

JONES: Once in April, once everything is closed my podcast will be starting. And that’s Deon’s Chronicle and Reveal. Yes, my own podcast.

BLADE: Since we have reported your attorney saying you have been on administrative leave since March of 2022, some in the community might be interested in what you have been doing since that time. Did you get another job or were you just waiting for this case to be resolved?

JONES: I was waiting for this to be resolved. I couldn’t work. That would violate policy and procedures of the D.C. government. So, I could not get another job or anything else.

BLADE: You have said under administrative leave you were still getting paid. You were still able to live off of that?

JONES: Yes, I was able to. Yes, sir. I used to do a lot of overtime. As a zone lieutenant for many years, I have supervised over 250 officers. I’ve also supervised over 25,000 inmates in my 30 years.

BLADE: How many years have you been working for the Department of Corrections?

JONES: It’s 30 years all together. I started down at the Lorton facility. Six facilities — I’ve worked for past directors, deputy directors, internal affairs. I’ve done it all.

BLADE: Do you have any plans now other than doing the podcast?

JONES: Well, to just do my podcast and also to write my book and my memoir inside of the house of pain, the house of shame — what I’ve been through. When I start my podcast off it will be stories — Part 1 through Part 4. And I will go back to the Lorton days all the way up to now. When it first started was sexual harassment and discrimination back down at Lorton. And I mean this has just been the worst time around.

BLADE: So, did you first start your work at the Lorton Prison?

JONES: Yes, I was at the central facility, which was the program institution.

MICHELMAN: Just for context. You may remember this, but the Lorton facility was where D.C. incarcerated people were held. So, that was part of the D.C. Department of Corrections.

BLADE: Yes, and that was located in Lorton, Va., is that right?

JONES: Right.

BLADE: Didn’t that close and is the main incarceration facility is now in D.C. itself?

JONES: Yes. And that closed in 2001.

BLADE: I see. And is the main D.C. jail now at a site near the RFK Stadium site?

JONES: Yes, sir. And next-door is the correctional treatment facility as well.

BLADE: So, are you saying the harassment and other mistreatment against you began back when you were working at the Lorton facility?

JONES: At the Lorton central facility. And they used to flash me too. When I say flash me like the residents, the inmates were flashing. And they [the employees] were flashing.

BLADE: What do you mean by flashing?

JONES: They take their penis out and everything else. I mean the sexual harassment was terrible. And I came out then down there. And I continued to advocate for myself and to advocate for other people who I was told were being picked on as well.

BLADE: As best you can recall, where and what year did that happen?

JONES: That was back in 1993 in April of 1993.

BLADE: The mayor’s office has declined to comment on the settlement and payment the city is giving you. Yet they have always said they have a strong policy of nondiscrimination protections for LGBTQ people in D.C. government agencies. But do you think that was not carried out at the Department of Corrections?

JONES: That’s a blatant reason why — I had 13 anxiety attacks. It was so blatant. Can you imagine? On the airwaves or the walkie-talkies — everybody had a walkie talkie — the captains and the majors and everything. And you transmit it to the command center or something like that. When you finish someone gets on the air and calls you a sissy or a fag.

They received so many complaints, and I also sent the mayor so many emails and begging for help. And they ignored it. They didn’t address any complaints at all. So, that’s bull.

BLADE: But now after you filed your lawsuit and you received this settlement do you think there will be changes there to protect the rights of other LGBTQ employees?

JONES: I hope so, because I have been defending community rights. For many years I have been advocating for different things and different services. And I’ve seen the treatment. There are a lot of mistreatments towards the community over there. And I have taken a stance for a lot of people in the community and protecting their constitutional rights as well as mine.

BLADE: What advice might you have for what the Department of Corrections should do to correct the situation that led to your lawsuit?

JONES: Well, what my advice for the department is they need to go back over their training. And they need to enforce rules against any acts of discrimination, retaliation, or sexual harassment. They need to enforce that. They’re not enforcing that at all. They’re not doing it at all. And this time it was worse than ever, then I’ve ever seen it. That you would get on the walkie talkie and someone would call you a fag or a sissy or whatever else or do evil things and everything. They are not enforcing what they are preaching. They are not enforcing that.

BLADE: Is there any kind of concluding comment you may want to make?

JONES: Well, I hope that this litigation will be a wakeup call for the department. And also, that it will give someone else the motivation to stand up for their rights. I was blessed to have the ACLU and WilmerHale to protect my constitutional rights. So, I am just really happy. So, I’m hoping that others will stand up for their rights. Because a lot of people in the community that worked there, they were actually afraid. And I had some people who actually quit because of the pressure.

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Baltimore

‘Heated Rivalry’ fandom exposes LGBTQ divide in Baltimore

Hit show raises questions about identity, cultural representation

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(Photo courtesy of Crave HBO Max)

By JOHN-JOHN WILLIAMS IV | “Heated Rivalry,” the surprise gay hockey romance that has captivated global audiences and become a cultural phenomenon, has inspired sold-out parties celebrating the characters from the steamy series, including in Baltimore.

For some, love of the show has exposed the loss of a once-vibrant gay nightlife in Charm City and splintered its LGBTQ community. It also brings up layered questions about identity, cultural representation, and the limits of identity politics.

In Baltimore, the majority of the parties also appear to be missing a key ingredient that has been a part of the show’s success: gay men at the helm. Last month, women hosted a dance party at Ottobar, a straight establishment.

The rest of this article can be read on the Baltimore Banner’s website.

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Virginia

McPike wins special election for Va. House of Delegates

Gay Alexandria City Council member becomes 8th LGBTQ member of legislature

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Alexandria City Council member Kirk McPike. (Photo courtesy Alexandria City Council)

Gay Alexandria City Council member Kirk McPike emerged as the decisive winner in a Feb. 10 special election for a seat in the Virginia House of Delegates representing Alexandria.  

McPike, a Democrat, received 81.5 percent of the vote in his race against Republican Mason Butler, according to the local publication ALX Now.

He first won election to the Alexandria Council in 2021. He will be filling the House of Delegates seat being vacated by Del. Elizabeth Bennett-Parker (D-Alexandria), who won in another Feb. 10 special election for the Virginia State Senate seat being vacated by gay Sen. Adam Ebbin (D-Alexandria). 

Ebbin is resigning from his Senate next week to take a position with Virginia Gov. Abigail Spanberger’s administration.

Upon taking his 5th District seat in the House of Delegate, McPike will become the eighth out LGBTQ member of the Virginia General Assembly. Among those he will be joining is Sen. Danica Roem (D-Manassas), who became the Virginia Legislature’s first transgender member when she won election to the House of Delegates in 2017 before being elected to the Senate in 2023.

“I look forward to continuing to work to address our housing crisis, the challenge of climate change, and the damaging impacts of the Trump administration on the immigrant families, LGBTQ+ Virginians, and federal employees who call Alexandria home,” McPike said in a statement after winning the Democratic nomination for the seat in a special primary held on Jan. 20. 

McPike, a longtime LGBTQ rights advocate, has served for the past 13 years as chief of staff for gay U.S. Rep. Mark Takano (D-Calif.) and has remained in that position during his tenure on the Alexandria Council. He said he will resign from that position before taking office in the House of Delegates.

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