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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.ā€™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.ā€™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. Ā 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,Ā that accumulated since 2008.

D.C. Mayor Vincent Gray, who praised T.H.E.ā€™s work on behalf of the LGBT community, said the city was forced to withdraw its funding for the group under a ā€œclean handsā€ 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.ā€™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 employeeĀ 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. ā€œunemploymentā€ taxes.

The group owes the State of Maryland $8,695 in ā€œemployment taxes/withholdingā€ 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.

ā€œTransgender Health Empowerment (T.H.E.), a non-profit group that has provided a wide range of services for D.C.ā€™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,ā€ the press release says.

ā€œCommunicating with our community and clients is of utmost importance to the Board of Directors, along with overseeing solid organization recovery,ā€ it says.

The release, however, makes no mention of the bankruptcy filing, saying only, ā€œOur 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.ā€

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, doesnā€™t mention the role the groupā€™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 organizationā€™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.ā€™s headquarters at 3339 10th Place, S.E., that much of the groupā€™s financial problems stemmed from outstanding debts with the IRS and D.C. and Maryland tax offices related to unpaid payroll withholding taxes.

ā€œThis, he mentioned, was the result of incorrect filings of successive accountants,ā€ the DOH report says. ā€œHe has since contracted with Wells Fargo Bank to manage the organizationā€™s payroll and remit all withholdings and related tax obligations.ā€

But according to the report, ā€œT.H.E. has no cash on hand and does not appear to have a realistic chance of working out a resolution with the IRSā€¦Many of their staff has already been laid off and a limited few are volunteering to perform limited duties,ā€ it says.

ā€œTheir clients are already impacted and have limited or no servicersā€¦In all practicality, T.H.E. has already shut their doors and cannot even be paid were they to invoice further.ā€

The report recommended that all DOH sub-grants ā€œbe suspended immediately and appropriate providers identified to provide the services.ā€

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.ā€™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

Town nightclub lawsuit against landlord dismissed in September

Court records show action was by mutual consent

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The former St. Phillips Baptist Church at 1001 North Capitol St., N.E., was slated to be the new home of Town 2.0. (Washington Blade photo by Lou Chibbaro, Jr.)

A lawsuit filed in April 2024 by Town 2.0, the company that planned to reopen the popular LGBTQ nightclub Town in a former church on North Capitol Street that accused its landlord of failing to renovate the building as required by a lease agreement was dismissed in a little-noticed development on Sept. 6, 2024.

A document filed in D.C. Superior Court, where the lawsuit was filed against Jemalā€™s Sanctuary LLC, the company that owns the church building, shows that a ā€œStipulation of Dismissal With Prejudiceā€ was jointly filed by the attorneys representing the two parties in the lawsuit and approved by the judge.

Jemal’s Sanctuary is a subsidiary of the Douglas Development Corporation, one of the city’s largest real estate development firms. 

An attorney familiar with civil litigation who spoke to the Washington Blade on condition of not being identified said a stipulation of dismissal indicates the two parties reached a settlement to terminate the lawsuit on conditions that are always confidential and not included in court records.

The attorney who spoke with the Blade said the term ā€œwith prejudiceā€ means the lawsuit cannot be re-filed again by either of the two parties.

The public court records for this case do not include any information about a settlement or the terms of such a settlement. However, the one-sentence Stipulation Of Dismissal With Prejudice addresses the issue of payment of legal fees.

ā€œPursuant to Rule 41(a) of the District of Columbia Superior Court Civil Rules, Plaintiff Town 2.0 LLC and Defendant Jemalā€™s Sanctuary LLC, by and through their undersigned counsel, hereby stipulate that the lawsuit be dismissed in its entirety, with prejudice, as to any and all claims and counterclaims asserted therein, with each party to bear its own fees and costs, including attorneysā€™ fees.ā€

The Town 2.0 lawsuit called for the termination of the lease and at least $450,000 in damages on grounds that Jemalā€™s Sanctuary violated the terms of the lease by failing to complete renovation work on the building that was required to be completed by a Sept. 1, 2020 ā€œdelivery date.ā€

In response to the lawsuit, attorneys for Jemalā€™s Sanctuary filed court papers denying the company violated the terms of the lease and later filed a countersuit charging Town 2.0 with violating its requirements under the lease, which the countersuit claimed included doing its own required part of the renovation work in the building, which is more than 100 years old.

Court records show Judge Maurice A. Ross, who presided over the case, dismissed the countersuit at the request of Town 2.0 on Aug. 20, 2024, on grounds that it was filed past the deadline of a three-year statute of limitations for filing such a claim.

Neither the owners of Town 2.0, their attorney, nor the attorney representing Jemalā€™s Sanctuary responded to a request by the Washington Blade for comment on the mutual dismissal of the lawsuit.

Town 2.0 co-owner John Guggenmos, who also owns with his two business partners the D.C. gay bars Trade and Number Nine, did not respond to a question asking if he and his partners plan to open Town 2.0 at another location.

What was initially known as Town Danceboutique operated from 2007 to 2018 in a large, converted warehouse building on 8th Street, N.W., just off Florida Avenue. It was forced to close when the buildingā€™s owner sold it to a developer who built a residential building in its place.

It was the last of the cityā€™s large LGBTQ dance hall nightclubs that once drew large crowds, included live entertainment, and often hosted fundraising events for LGBTQ community organizations and causes.  

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District of Columbia

Doechii to headline WorldPride closing concert

Grammy winner scheduled for June 8 performance

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The Capital Pride Alliance announced last week that Doechii will perform at the closing concert for WorldPride weekend.

Doechii, born Jaylah Ji’mya Hickmon, is a 26-year-old rapper and singer from Tampa, Fla. Since her emergence on the music scene in 2023, she has had five songs chart on the Billboard Hot 100. Beginning with ā€œWhat It Is (Block Boy),ā€ she has quickly risen into the upper ranks of the rap and music industries.

The Capital Pride Alliance, the nonprofit that organizes Washingtonā€™s official Pride events and is overseeing the upcoming WorldPride celebration in June, announced on Instagram that the ā€œAlligator Bites Never Healā€ performer will headline WorldPrideā€™s free Street Festival & Closing Concert on Sunday, June 8.

This announcement comes just over a month after the self-proclaimed “Swamp Princess” won her first Grammy for Best Rap Album. Her win marks only the third time in history that a woman has won the awardā€”following Lauryn Hill and Cardi B. She also became only the second rapper to be named Billboardā€™s Woman of the Year earlier this year.

Doechii is bisexual and has spoken about the challenges of being a Black queer woman in the music industry.

ā€œIā€™m a Black woman from the South, so itā€™s different,ā€ Doechii told Pink News in an interview last year. ā€œThereā€™s a lot of racism and homophobia, so itā€™s hard, itā€™s very, very hard. Even though I was aware, I didnā€™t feel as comfortable until I started surrounding myself with more gay friends.ā€

Doechiiā€™s bold, genre-blending style and unapologetic presence have made her a favorite among LGBTQ fans, who have embraced her music as anthems of self-expression and resilience.

Despite being fairly new to the mainstream music game, Doechii is no stranger to Washington. In June 2024, Doechii performed a special set at D.C.’s gay bar Trade as part of her SWAMP BALL TOUR. That night, a line of fans stretched down 14th Street and around the corner, eager to see the rising star in an intimate setting.

For more information about WorldPride concerts, events, and celebrations, visit worldpridedc.org.

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District of Columbia

Suspect pleads guilty to drug sale that led to deaths of two D.C. gay men

Prosecutors say defendant sold victim fentanyl instead of ketamine

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Shakers posted this Instagram message about a celebration of life forĀ Brandon RomanĀ andĀ Robbie BarlettaĀ held last year.

A D.C. man pleaded guilty on March 14 in federal court to conspiracy related charges that he distributed large amounts of fentanyl and cocaine in the D.C. metropolitan area, including the sale of fentanyl that resulted in the December 2023 deaths of two D.C. gay men.

A statement released by the Office of the U.S. Attorney for the District of Columbia says Jevaughn ā€œLedoā€ Mark, 33, pleaded guilty to conspiracy to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine, and unlawful possession of a firearm by a felon.

He is scheduled to be sentenced June 13 by U.S. District Court Judge Tanya S. Chutkan.

The March 14 statement released by the U.S. Attorneyā€™s Office says Mark was initially charged in an indictment with eight counts of unlawful distribution of fentanyl, cocaine, and heroin, and distributing 40 grams or more of fentanyl between January and March of 2024.

ā€œOn June 13, 2024, Jevaughn Mark was charged in a second superseding indictment in connection with distributing fentanyl and cocaine on December 26, 2023, that resulted in the deaths of two men, Brandon Roman and Robert Barletta, at their home in Northwest Washington,ā€ the statement says.

ā€œPursuant to the plea agreement, Mark admitted to causing the death of both individuals by selling ā€˜ketamineā€™ (which was actually fentanyl) to one victim who shared the drugs with the other victim,ā€ the U.S. Attorneyā€™s statement says. ā€œBoth men were found unresponsive the day after Mark sold them the ā€˜ketamine,ā€™ā€ according to the statement.

Roman, 38, a prominent D.C. attorney and LGBTQ rights advocate, and Barletta, 28, a historic preservation expert and home renovation business owner, were found unconscious when police and emergency medical personnel responded to a 911 call and arrived at Barlettaā€™s home on Dec. 27, 2023, according to police and fire department reports.  

The reports show Roman was declared deceased at the scene and Barletta was taken to the Washington Hospital Center, where he died on Dec. 29, 2023.

Both men were patrons at D.C. gay bars and their passing prompted many in the LGBTQ community to call for stepped up prevention services related to drug overdose cases.

At the time Mark was indicted on drug distribution charges in June 2024, prosecutors said undercover D.C. police and U.S. Drug Enforcement Administration agents posing as drug buyers approached Mark during their investigation to purchase Ketamine, which is known on the street as Special K, the U.S. Attorneyā€™s office said in an earlier statement.

ā€œIn each instance, the DEA/MPD agents requested to buy ā€˜Special Kā€™ or Ketamine from Jevaughn Mark,ā€ the earlier statement says. ā€œIn every instance, Jevaughn Mark supplied a mixture of fentanyl and other substances, including heroin, but not ketamine,ā€ it says.

That report of Markā€™s distribution of fentanyl rather than the requested drug of ketamine prompted an official with the D.C.-based group HIPS, which provides services to drug users and sex workers, to call the deaths of Roman and Barletta a ā€œpoisoningā€ rather than an ā€œoverdose.ā€

Court records show Mark has been held without bond since the time of his indictment and arrest in June 2024. 

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