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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

Judge rescinds stay-away order in Capital Pride anti-stalking case

Evidence hearing to determine if order should be reinstated against Darren Pasha

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Darren Pasha (Washington Blade photo by Michael Key)

A D.C. Superior Court judge on April 17 rescinded an anti-stalking order he approved in February at the request of Capital Pride Alliance against local LGBTQ activist Darren Pasha. 

In a ruling at a court status hearing, Judge Robert D. Okum agreed with defendant Darren Pasha’s stated concern that the initial order was too broad and did not specify who specifically he must stay at least 100 feet away from, as called for in the order.

Okum ruled on April 17 that the initial order, which he noted was oral rather than written, would be suspended until an evidentiary hearing takes place in which Capital Pride will need to present evidence justifying the need for such an order.   

“I’m fine with scheduling a hearing at which the plaintiff can present evidence, and the defendant can present evidence,” Okum said. “But I’m not fine with just continuing this oral TRO [Temporary Restraining Order] that Mr. Pasha really doesn’t even have notice of. That seems unfair,” he said.

After asking both Pasha and Capital Pride Alliance Attorney Nick Harrison when they would be available for the evidence hearing, Okum set the date for April 27 at 11 a.m. in Superior Court. 

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’s staff, board members, and volunteers.

The complaint was accompanied by a separate motion seeking a restraining order, preliminary injunction, and anti-stalking order prohibiting Pasha from “any further contact, harassment, intimidation, or interference with the Plaintiff, its staff, board members, volunteers, and affiliates.”

In his initial ruling in February, Okum issued an order requiring Pasha to stay at least 100 feet away from Capital Pride staff, board members, and volunteers until the April 17 status hearing. He reduced the stay-away distance from the 200 yards requested by Capital Pride.

Pasha, who has so far represented himself in court without an attorney, has argued in multiple court filings and motions that the Capital Pride stalking allegations are untrue. In his initial 16-page response to the complaint, Pasha 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.

“It is evident that the document is replete with false, misleading, and unsubstantiated assertions,” Pasha’s court response states. 

At the April 17 hearing, Okum also ruled that, as standard procedure for civil complaints such as this one, he has ordered both parties to enter into court-supervised mediation to attempt to reach a settlement rather than go to trial.  

In an earlier ruling Okum denied Pasha’s request for a jury trial, stating that civil cases such as this must undergo a trial with the judge determining the verdict under existing civil court statutes.

The April 17 court hearing was held in a courtroom at the courthouse, but as allowed under current court rules, Capital Pride attorney Harrison and Capital Pride official June Crenshaw participated virtually through a video connection. Pasha attended the hearing in the courtroom. 

“This matter is proceeding through the court in the normal course,” Capital Pride released in a statement. “We look forward to presenting the relevant evidence at the scheduled hearing. Capital Pride Alliance remains committed to maintaining a safe and respectful environment for our staff, volunteers, and community, and to addressing concerns through appropriate channels.”

“This is clearly a case of retaliation,” Pasha told the Blade after the hearing. “Today the judge removed the stay-away order and asked Capital Pride Alliance to present enough evidence and examples to see if a stay-away order should be granted,” he said. “Because Pride is coming up in June, we need to see where this is going.”

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District of Columbia

Gay D.C. police lieutenant arrested on child porn charges

Matthew Mahl once served as head of LGBT Liaison Unit

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Matthew Mahl (Washington Blade file photo by Michael Key)

D.C. police announced on April 14 that they have placed one of their lieutenants, Matthew Mahl, on administrative leave and revoked his police powers after receiving information that he was arrested in Maryland one day earlier.  

Although the initial D.C. police announcement doesn’t disclose the reason for the arrest it refers to a statement by the Harford County, Md. Sheriff’s Office that discloses Mahl has been charged with sexual solicitation of a minor and child porn solicitation.

“On Tuesday, the Harford County Sheriff’s Office contacted MPD’s Internal Affairs Division shortly after arresting Lieutenant Matthew Mahl,” the D.C. police statement says.

“The allegations in this case are extremely disturbing, and in direct contrast to the values of the Metropolitan Police Department,” the statement continues. “MPD’s Internal Affairs Division will investigate violations of MPD policy once the criminal investigation concludes,” it says.

“MPD is not involved in the criminal investigation and was not aware of the investigation until yesterday,” the statement adds.

Mahl served as acting supervisor of the MPD’s then Gay & Lesbian Liaison Unit in 2013 when he held the rank of sergeant. D.C. police officials placed him on administrative leave and suspended his police powers that same year while investigating an undisclosed allegation.

A source familiar with the investigation said Mahl was cleared of any wrongdoing a short time later and resumed his police duties. Around the time he was promoted to lieutenant several years later Mahl took on the role as chairman of the D.C. Police Union, becoming the first known openly gay officer to hold that position.

NBC 4 reports that Mahl, 47, has served on the police force for 23 years and most recently was assigned to the department’s Special Operations Division.

Records related to Mahl’s arrest filed in Harford County District Court, show Sheriff’s Department investigators state in charging documents that he allegedly committed the offenses of Sexual Solicitation of a Minor and Child Porn Solicitation on Monday, April 13, one day before he was arrested on April 14.   

The court records show he was held without bond during his first appearance in court on April 14. A decision on whether he would be released while awaiting trial or continue to be held without bond was scheduled to be determined during an April 15 bond hearing. The outcome of that hearing could not be immediately determined.  

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Maryland

Evan Glass is leaning on his record. Is that enough for Montgomery County’s top job?

Gay county executive candidate pushing for equitable pay, safer streets, and cleaner environment

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Montgomery County Council member Evan Glass, center, speaks to attendees of a meet and greet event at Poolesville Memorial United Methodist Church. (Photo by Meredith Rizzo for the Baltimore Banner)

By TALIA RICHMAN | During a meet-and-greet at Poolesville Memorial United Methodist Church, Evan Glass got his loudest applause of the night with a plan he acknowledged was decidedly unsexy.

“Day one, I’ll hire a director of permitting services,” the county executive candidate said.

Doing so, he added, is a step toward easing the regulatory burdens that can stifle small businesses in Montgomery County.

The only problem? At least one of his fiercest competitors is making a similar pledge.

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

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