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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

Drag queens protest Trump at the Kennedy Center

President attended ‘Les Misérables’ opening night on Wednesday

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The Kennedy Center (Washington Blade photo by Michael Key)

On Wednesday night, four local drag performers attended the first night of the Kennedy Center’s season in full drag — while President Donald Trump, an outspoken critic of drag, sat mere feet away. 

Three queens — Tara Hoot, Vagenesis, and Mari Con Carne — joined drag king Ricky Rosé to represent Qommittee, a volunteer network uniting drag artists to support and defend each other amid growing conservative attacks. They all sat down with the Washington Blade to discuss the event.

The drag performers were there to see the opening performance of “Les Misérables” since Trump’s takeover of the historically non-partisan Kennedy Center. The story shows the power of love, compassion, and redemption in the face of social injustice, poverty, and oppression, set in late 19th century France. 

Dressed in full drag, the group walked into the theater together, fully aware they could be punished for doing so.

“It was a little scary walking in because we don’t know what we’re going to walk into, but it was really helpful to be able to walk in with friends,” said drag queen Vagenesis. “The strongest response we received was from the staff who worked there. They were so excited and grateful to see us there. Over and over and over again, we heard ‘Thank you so much for being here,’ ‘Thank you for coming,’ from the Kennedy Center staff.”

The staff weren’t the only ones who seemed happy at the act of defiance. 

“We walked in together so we would have an opportunity to get a response,” said Tara Hoot, who has performed at the Kennedy Center in full drag before. “It was all applause, cheers, and whistles, and remarkably it was half empty. I think that was season ticket holders kind of making their message in a different way.”

Despite the love from the audience and staff, Mari Con Carne said she couldn’t help feeling unsettled when Trump walked in.

“I felt two things — disgust and frustration,” Carne said. “Obviously, I don’t align with anything the man has to say or has to do. And the frustration came because I wanted to do more than just sit there. I wanted to walk up to him and speak my truth  — and speak for the voices that were being hurt by his actions right now.”

They weren’t the only ones who felt this way according to Vagenesis:

“Somebody shouted ‘Fuck Trump’ from the rafters. I’d like to think that our being there encouraged people to want to express themselves.”

The group showing up in drag and expressing themselves was, they all agreed, an act of defiance. 

“Drag has always been a protest, and it always will be a sort of resistance,” Carne said, after pointing out her intersectional identity as “queer, brown, Mexican immigrant” makes her existence that much more powerful as a statement. “My identity, my art, my existence — to be a protest.”

Hoot, who is known for her drag story times, explained that protesting can look different than the traditional holding up signs and marching for some. 

“Sometimes protesting is just us taking up space as drag artists,” Hoot added. “I felt like being true to who you are —  it was an opportunity to live the message.”

And that message, Ricky Rosé pointed out, was ingrained with the institution of the Kennedy Center and art itself — it couldn’t be taken away, regardless of executive orders and drag bans

“The Kennedy Center was founded more than 50 years ago as a place meant to celebrate the arts in its truest, extraordinary form,” said Ricky Rosé. “President Kennedy himself even argued that culture has a great practical value in an age of conflict. He was quoted saying, ‘the encouragement of art is political in the most profound sense, not as a weapon in the struggle, but as an instrument of understanding the futility of struggle’ and I believe that is the basis of what the Kennedy Center was founded on, and should continue. And drag fits perfectly within it.”

All four drag performers told the Washington Blade — independently of one another — that they don’t think Trump truly understood the musical he was watching.

“I don’t think the president understands any kind of plot that’s laid out in front of him,” Vagenesis said. “I’m interested to see what he thinks about “Les Mis,” a play about revolution against an oppressive regime. I get the feeling that he identifies with the the rebellion side of it, instead of the oppressor. I just feel like he doesn’t get it. I feel it goes right over his head.”

“Les Misérables” is running at the Kennedy Center until July 13.

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Comings & Goings

Kefalas, Czapary to open Yala Greek Ice Cream Shop in Georgetown

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Chrys Kefalas and Salah Czapary

The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected]

Congratulations to Chrys Kefalas and Salah Czapary on their new venture, the Yala Greek Ice Cream Shop, which will open in Georgetown, at 3143 N St. N.W., around July 4.

Kefalas is the CEO and founder, Czapary is the co-founder/director of experience and operations. The third co-founder is Steve Shyn, COO. From what I hear Chrys and Salah will at times both be doing the scooping to the lucky people who stop by their shop. The word “Yala” is a play on the Greek word for “milk,” and fittingly, Yala Greek Ice Cream is made using hand-crafted techniques passed down through three generations of Greek ice cream makers. 

Kefalas told the Blade, “This is not frozen yogurt, just inspired by Greek flavors or a trendy twist on gelato. This is true Greek ice cream, finally making its American debut. It is crafted with farm-fresh milk from Maryland, Greek yogurt and honey, fruit preserves from the Mediterranean, and ingredients sourced directly from Greece, Italy, and the Middle East, including premium pistachios and sustainably harvested vanilla.” 

The two come from different backgrounds. Kefalas has a family in the restaurant business but is currently the head of the brand division at the National Association of Manufacturers. He is a former Justice Department attorney; worked as Attorney General Eric Holder’s speech writer; Gov. Bob Erlich’s counsel in Maryland; and ran for U.S. Senate in Maryland (endorsed by the Baltimore Sun). Born and raised in Baltimore, he’s a Washingtonian of nine years. He told the Blade, “Yala Ice Cream is a tribute, a legacy, and a love letter across generations.” He spent his early years working in his grandfather’s restaurant in Baltimore, Illona’s. Kefalas hopes, “Just like Greek yogurt changed everything, Greek ice cream is going to set the new standard for ice cream. But, for us, it isn’t just about ice cream; it’s about making my Papou, my grandfather, proud.” 

Many people in D.C. know Czapary. He is the son of a Palestinian refugee, and Hungarian immigrant, and a longtime Washington, D.C. resident. Czapary served as a police officer and community engagement leader with the MPD. He then ran for D.C. Council, and although didn’t win, was endorsed by the Washington Post. After that race, D.C. Mayor Muriel Bowser realized how accomplished he is and asked him to join her administration, where he served as director of the Mayor’s Office of Nightlife and Culture. 

Czapary told the Blade, “We’re bringing the first authentic Greek ice cream shop to the U.S., and we’re doing it with heart. We’re building a space where kindness, community, and a scoop of something extraordinary come together. Our Georgetown scoop shop is designed to be a welcoming haven where every guest feels a sense of belonging.”

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Delaware

Delaware Senate passes bill to codify same-sex marriage

Measure assigned to House Administration Committee

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Delaware state Sen. Russ Huxtable introduced the original bill in April. (Blade photo by Daniel Truitt)

The bill that would enshrine same-sex marriage into Delaware’s Constitution passed the State Senate Tuesday afternoon. 

Senate Substitute Two for Senate Bill 100 passed with a 16 to 5 vote, garnering the two-thirds majority necessary to pass. The bill has been assigned to the House Administration Committee.

SB 100 was introduced in April by Democratic Sen. Russ Huxtable of the sixth district of Delaware. It is the first leg of an amendment to the Delaware Constitution. The act would “establish the right to marry as a fundamental right and that Delaware and its political subdivisions shall recognize marriages and issue marriage licenses to couples regardless of gender.”

Senate Substitute One was adopted in lieu of the original bill on May 16. SB 100 originally focused exclusively on marriage equality relating to gender and the bill was tweaked to include protection for all classes that fall under Delaware’s Equal Rights Amendment, including race, color, national origin, and sex. Senate Substitute Two was then adopted in lieu of SB 100 on June 5 after being heard by the Senate Executive Committee on May 21. 

SS 2 differs from SB 100 by clarifying that the right to marry applies to marriages that are legally valid under the laws of Delaware and that all state laws that are applicable to marriage, married spouses, or the children of married spouses apply equally to marriages that are legally valid. It also removed the need for gender-specific provisions by including gender in the first sentence and revised the language clarifying that the right to marry does not infringe on the right to freedom of religion under Article One of the Delaware Constitution.

“We’re not here to re-litigate the morality of same-sex marriage. That debate has been settled in the hearts and minds of most Americans, and certainly here in Delaware,” Sen. Huxtable said at Tuesday’s hearing. “We are here because the fundamental rights should never be left vulnerable to political whims or the ideological makeup of the U.S. Supreme Court.”

Other states such as California, Colorado, and Hawaii have introduced and passed similar bills to protect the right of all people of all genders to marry under state law. 

“This bill sends a strong message that Delaware protects its people, that we will not wait for rights to be taken away before we act,” Sen. Huxtable said at the hearing. “Voting in favor of this amendment is not just the legal mechanism of marriage, it’s about affirming the equal humanity of every Delawarean.”

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