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
‘Sandwich guy’ not guilty in assault case
Sean Charles Dunn faced misdemeanor charge
A jury with the U.S. District Court for the District of Columbia on Thursday, Nov. 6, found D.C. resident Sean Charles Dunn not guilty of assault for tossing a hero sandwich into the chest of a U.S. Customs and Border Protection agent at the intersection of 14th and U streets, N.W. at around 11 p.m. on Aug. 10.
Dunn’s attorneys hailed the verdict as a gesture of support for Dunn’s contention that his action, which was captured on video that went viral on social media, was an exercise of his First Amendment right to protest the federal border agent’s participating in President Donald Trump’s deployment of federal troops on D.C. streets.
Friends of Dunn have said that shortly before the sandwich tossing incident took place Dunn had been at the nearby gay nightclub Bunker, which was hosting a Latin dance party called Tropicoqueta. Sabrina Shroff, one of three attorneys representing Dunn at the trial, said during the trial after Dunn left the nightclub he went to the submarine sandwich shop on 14th Street at the corner of U Street, where he saw the border patrol agent and other law enforcement officers standing in front of the shop.
Shroff and others who know Dunn have said he was fearful that the border agent outside the sub shop and immigrant agents might raid the Bunker Latin night event. Bunker’s entrance is on U Street just around the corner from the sub shop where the federal agents were standing.
“I am so happy that justice prevails in spite of everything happening,“ Dunn told reporters outside the courthouse after the verdict while joined by his attorneys. “And that night I believed that I was protecting the rights of immigrants,” he said.
“And let us not forget that the great seal of the United States says, E Pluribus Unum,” he continued. “That means from many, one. Every life matters no matter where you came from, no matter how you got here, no matter how you identify, you have the right to live a life that is free.”
The verdict followed a two-day trial with testimony by just two witnesses, U.S. Customs and Border Protection agent Gregory Lairmore, who identified Dunn as the person who threw the sandwich at his chest, and Metro Transit Police Detective Daina Henry, who told the jury she witnessed Dunn toss the sandwich at Lairmore while shouting obscenities.
Shroff told the jury Dunn was exercising his First Amendment right to protest and that the tossing of the sandwich at Lairmore, who was wearing a bulletproof vest, did not constitute an assault under the federal assault law to which Dunn was charged, among other things, because the federal agent was not injured.
Prosecutors with the Office of the U.S. Attorney for D.C. initially attempted to obtain a grand jury indictment of Dunn on a felony assault charge. But the grand jury refused to hand down an indictment on that charge, court records show. Prosecutors then filed a criminal complaint against Dunn on the misdemeanor charge of assaulting, resisting, or impeding certain officers of the United States.
“Dunn stood within inches of Victim 1,” the criminal complaint states, “pointing his finger in Victim 1’s face, and yelled, Fuck you! You fucking fascists! Why are you here? I don’t want you in my city!”
The complaint continues by stating, “An Instagram video recorded by an observer captured the incident. The video depicts Dunn screaming at V-1 within inches of his face for several seconds before winding his arm back and forcefully throwing a sub-style sandwich at V-1.
Prosecutors repeatedly played the video of the incident for the jurors on video screens in the courtroom.
Dunn, who chose not to testify at his trial, and his attorneys have not disputed the obvious evidence that Dunn threw the sandwich that hit Lairmore in the chest. Lead defense attorney Shroff and co-defense attorneys Julia Gatto and Nicholas Silverman argued that Dunn’s action did not constitute an assault under the legal definition of common law assault in the federal assault statute.
Assistant U.S. Attorney Michael DiLorenzo, the lead prosecutor in the case, strongly disputed that claim, citing various provisions in the law and appeals court rulings that he claimed upheld his and the government’s contention that an “assault” can take place even if a victim is not injured as well as if there was no physical contact between the victim and an alleged assailant, only a threat of physical contact and injury.
The dispute over the intricacies of the assault law and whether Dunn’s action reached the level of an assault under the law dominated the two-day trial, with U.S. District Court Judge Carl J. Nichols, who presided over the trial, weighing in with his own interpretation of the assault statute. Among other things, he said it would be up to the jury to decide whether or not Dunn committed an assault.
Court observers have said in cases like this, a jury could have issued a so-called “nullification” verdict in which they acquit a defendant even though they believe he or she committed the offense in question because they believe the charge is unjust. The other possibility, observers say, is the jury believed the defense was right in claiming a law was not violated.
DiLorenzo and his two co-prosecutors in the case declined to comment in response to requests by reporters following the verdict.
“We really want to thank the jury for having sent back an affirmation that his sentiment is not just tolerated but it is legal, it is welcome,” defense attorney Shroff said in referring to Dunn’s actions. “And we thank them very much for that verdict,” she said.
Dunn thanked his attorneys for providing what he called excellent representation “and for offering all of their services pro bono,” meaning free of charge.
Dunn, an Air Force veteran who later worked as an international affairs specialist at the U.S. Department of Justice, was fired from that job by DOJ officials after his arrest for the sandwich tossing incident.
“I would like to thank family and friends and strangers for all of their support, whether it was emotional, or spiritual, or artistic, or financial,” he told the gathering outside the courthouse. “To the people that opened their hearts and homes to me, I am eternally grateful.”
“As always, we accept a jury’s verdict; that is the system within which we function,” CNN quoted U.S. Attorney for D.C. Jeanine Pirro as saying after the verdict in the Dunn case. “However, law enforcement should never be subjected to assault, no matter how ‘minor,’” Pirro told CNN in a statement.
“Even children know when they are angry, they are not allowed to throw objects at one another,” CNN quoted her as saying.
Maryland
Democrats hold leads in almost every race of Annapolis municipal election
Jared Littmann ahead in mayor’s race.
By CODY BOTELER | The Democratic candidates in the Annapolis election held early leads in the races for mayor and nearly every city council seat, according to unofficial results released on election night.
Jared Littmann, a former alderman and the owner of K&B Ace Hardware, did not go so far as to declare victory in his race to be the next mayor of Annapolis, but said he’s optimistic that the mail-in ballots to be counted later this week will support his lead.
Littmannn said November and December will “fly by” as he plans to meet with the city department heads and chiefs to “pepper them with questions.”
The rest of this article can be read on the Baltimore Banner’s website.
Democrats on Tuesday increased their majority in the Virginia House of Delegates.
The Associated Press notes the party now has 61 seats in the chamber. Democrats before Election Day had a 51-48 majority in the House.
All six openly gay, lesbian, and bisexual candidates — state Dels. Rozia Henson (D-Prince William County), Laura Jane Cohen (D-Fairfax County), Joshua Cole (D-Fredericksburg), Marcia Price (D-Newport News), Adele McClure (D-Arlington County), and Mark Sickles (D-Fairfax County) — won re-election.
Lindsey Dougherty, a bisexual Democrat, defeated state Del. Carrie Coyner (R-Chesterfield County) in House District 75 that includes portions of Chesterfield and Prince George Counties. (Attorney General-elect Jay Jones in 2022 texted Coyner about a scenario in which he shot former House Speaker Todd Gilbert, a Republican.)
Other notable election results include Democrat John McAuliff defeating state Del. Geary Higgins (R-Loudoun County) in House District 30. Former state Del. Elizabeth Guzmán beat state Del. Ian Lovejoy (R-Prince William County) in House District 22.
Democrats increased their majority in the House on the same night they won all three statewide offices: governor, lieutenant governor, and attorney general.
Narissa Rahaman is the executive director of Equality Virginia Advocates, the advocacy branch of Equality Virginia, a statewide LGBTQ advocacy group, last week noted the election results will determine the future of LGBTQ rights, reproductive freedom, and voting rights in the state.
Republican Gov. Glenn Youngkin in 2024 signed a bill that codified marriage equality in state law.
The General Assembly earlier this year approved a resolution that seeks to repeal the Marshall-Newman Amendment that defines marriage in the state constitution as between a man and a woman. The resolution must pass in two successive legislatures before it can go to the ballot.
Shreya Jyotishi contributed to this article.
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