Local
DC trans group files for bankruptcy
T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

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.
District of Columbia
D.C. Pride flag raising ceremony set for June 1
Mayor, council members to participate
D.C. Mayor Muriel Bowser’s Office of LGBTQ Affairs is inviting the LGBTQ community and friends to attend the city’s annual Pride flag raising ceremony scheduled for 4 p.m. Monday, June 1, outside the John Wilson Building that serves as the D.C. City Hall.
Like in prior years, members of the D.C. Council and officials with the Office of LGBTQ Affairs were expected to join Bowser in delivering remarks on the front entrance steps at the Wilson Building before raising the Pride flag atop one of the tall flagpoles next to the building’s entrance.
Gaby Vincent, a spokesperson for the LGBTQ Affairs Office, said attendees of the flag raising ceremony will be invited to attend a reception immediately following the ceremony in the main lobby of the Wilson Building, which is located on Pennsylvania Avenue at 14th Street, N.W.
She said the reception will feature a DJ, dancing, and refreshments provided by the D.C. LGBTQ bar and café Spark Social House.
Vincent said the flag raising event will also mark the 20th anniversary of the opening of the D.C. Mayor’s Office of LGBTQ Affairs.
In its official announcement of the flag raising event the LGBTQ Affairs Office also announced it is hosting the 7th annual District of Pride Showcase event to be held Friday, June 17, at 7 p.m. at the Lincoln Theater.
The announcement says LGBTQ community members, families, and allies are also invited to walk with Bowser in the Capital Pride Parade scheduled for Saturday, June 20. It says the mayor’s parade contingent will assemble at 2 p.m. at the parade’s starting location at 14th and U Streets, N.W.
“As we also celebrate the 20th anniversary of the Mayor’s Office of LGBTQ Affairs, we invite residents, community members, families and allies to join us throughout June for moments of pride, connection, visibility, and joy,” the announcement says.
District of Columbia
‘Queer Love’ campaign launched to address domestic violence
D.C. event set for LGBTQ+ Domestic Violence Awareness Day on May 28
The D.C.-based Wanda Alston Foundation, which provides housing and support services for homeless LGBTQ youth, announced earlier this month that it has joined partner organizations to launch a Queer Love Shouldn’t Hurt campaign aimed at addressing domestic violence within the LGBTQ community.
In a May 18 statement, the Alston Foundation said the campaign involves a public awareness initiative leading up to LGBTQ+ Domestic Violence Awareness Day scheduled for May 28.
“Domestic and family violence in LGBTQ+ communities is real and too often invisible,” Cesar Toledo, the Alston Foundation’s executive director, said in the statement. “As a community, we do not talk about it enough, and that silence can leave survivors feeling isolated and alone,” he said. “We must break that silence.”
He added that culturally competent care for those impacted by domestic violence is available through a newly launched website, queerlove.org, “where people can safely access vital resources, educational toolkits, and support networks they need on their healing journey.”
The website announces one of the project’s first events, a Queer Love Community Social, was scheduled for Thursday, May 28, from 6-8 p.m. at the D.C. LGBTQ+ Community Center at 1827 Wiltberger St., N.W.
“Join us this LGBT+ Domestic Violence Awareness Day for a community social dedicated to visibility and survivor resilience,” the website statement says. “Let’s gather to strengthen our bonds, honor the path to healing, and share free resources,” it says of the May 28 event.
The website also announces a June 1 workshop called Empowering Survivors of LGBTQ+ Intimate Partner Violence, which it says will be presented by Jesse Wedell, an official with the D.C. LGBT+ Counseling Collaborative. The website provides an online form to register for the workshop upon which its location would be disclosed.
It identifies the partner organizations working with the Alston Foundation on the Queer Love Public Awareness Campaign as the LGBT+ Counseling Collaborative, Whitman-Walker Health, the D.C. LGBTQ+ Community Center, and Equality Chamber.
The resources and information provided by the project can be accessed at www.queerlove.org.
District of Columbia
Man accused of threatening to shoot D.C. bar employee after making anti-gay slurs
May 24 incident took place near Black Pride events on U Street
D.C. police on Sunday, May 24, at around 4:20 p.m. arrested a Maryland man for allegedly threatening to shoot an employee while using anti-gay slurs at Ben’s Next Door restaurant and bar at 1211 U St., N.W.
According to a statement released by police and a police incident report, the arrested man, identified as Delonte Fraley, 32, of Accokeek, Md., made the threats after the employee told a bartender not to serve the man alcohol.
“The suspect overheard the employee and threatened to shoot the employee and used homophobic slurs against the employee,” the police statement says. “When the employee left the restaurant for the day, the suspect was standing near the employee’s vehicle,” it says.
“The employee returned to the restaurant and called the police,” the statement continues. “The suspect was apprehended by responding officers,” it says.
The police statement says the arresting officers charged Fraley with Felony Threats (Hate/Bias).
D.C. Superior Court records show prosecutors with the Office of the U.S. Attorney for D.C., which prosecutes D.C. criminal cases, escalated the charge to Threatening to Injure or Kidnap a Person (Bias-Related Hate Crime).
The incident occurred during Memorial Day weekend when thousands of visitors and D.C. area LGBTQ advocates and supporters were attending D.C. Black Pride events held in locations across the city, including Black Pride parties hosted by LGBTQ bars in the U Street entertainment area near Ben’s Next Door.
Among the nearby LGBTQ bars hosting D.C. Black Pride events were Nellie’s Sports Bar and Thurst Lounge. Ben’s Next Door is located next to the popular longtime U Street eatery Ben’s Chili Bowl.
Court records show that Judge Robert R. Rigsby at a May 25 presentment hearing released Fraley on personal recognizance with a stay-away order — the details of which were not publicly disclosed pending a June 4 preliminary hearing.
A more detailed arrest affidavit filed in court by D.C. police says Fraley allegedly confronted the employee at Ben’s Next Door with anti-gay slurs on the day prior to his arrest.
“The complainant told the defendant that because he used homophobic slurs towards himself previously on May 23, 2026, and his hostess, as well as making threats to the complainant and calling him a faggot, he was unable to stay in the establishment,” the affidavit states.
It adds, “The defendant became irate stating, ‘I know where your Tesla is at. See me outside faggot, I will slap your ass’ and ‘I will shoot your ass.’” The affidavit says the complainant confirmed to police the Tesla referred to by Fraley was his vehicle. It says as the victim walked toward his car after getting off work, he saw Fraley standing directly in front of the car.
“The complainant stated he felt unsafe while the defendant was standing in front of his vehicle because he felt the defendant was capable of carrying out those threats,” says the affidavit. It says the victim then decided to return to the restaurant and call police without the defendant having seen him.
“The defendant was placed under arrest for Felony Threats Hate/Bias and was transported to the Third District Station for processing,” the affidavit concludes.
It couldn’t immediately be determined whether the victim identifies as LGBTQ or whether any of the Ben’s Next Door patrons had been involved with D.C. Black Pride.
“Established in 2008, Ben’s Next Door is a family-owned and operated restaurant and bar on U Street, Northwest in Washington, D.C.,” a statement on its website says. “As a Black-owned establishment, it’s our goal to deliver a warm, welcoming, familiar, and communal vibe to all guests,” the statement says.
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