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District of Columbia

Gay man gets 6.5 years in prison for stealing $2.1 million in pandemic funds

Former D.C. Catholic official pleaded guilty

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Kenneth P. Gaughan was sentenced earlier this month. (Photo via Facebook)

In a little-noticed development, a federal judge on Sept. 2 sentenced Kenneth P. Gaughan, a gay former assistant superintendent and contracting liaison for the Catholic Archdiocese of Washington, to six years and six months in prison on charges that he fraudulently obtained more than $2.1 million in funds for personal use from two federal COVID relief programs.

Records from the U.S. District Court for the District of Columbia show that Gaughan pleaded guilty on March 2, 2022, as part of a plea bargain offer by prosecutors to partially reduced charges related to the COVID relief program case as well as to a charge that he embezzled more than $438,000 from the Archdiocese of Washington, where he was employed from 2008 to 2018.

A statement released by the Office of the U.S. Attorney for D.C. says Gaughan pleaded guilty to one count of wire fraud and one count of money laundering in the federal relief fund case and one count of wire fraud in the case involving the Archdiocese of Washington.

Gaughan was released while awaiting trial after his arrest on Aug. 11, 2020, on a criminal complaint that combined the charges from the federal relief fund case and the Archdiocese of Washington case. 

In addition to the six years and six months prison term, U.S. District Court Judge Tanya S. Chutkan sentenced Gaughan to three years of supervised probation upon his release. She also ordered that he pay restitution for the money he is charged with stealing through fraud and embezzlement at an amount to be determined at a Nov. 15 restitution hearing, according to court records.

“For a decade, Kenneth Gaughan stole money meant to help needy people, businesses, and organizations, starting with a scheme defrauding his own employer and later looting government COVID-relief efforts,” said U.S. Attorney for D.C. Matthew M. Graves in a statement released at the time of the sentencing.

“He went to great lengths to conceive, carry out, and conceal his crimes,” Graves said. “Now, he will be facing the consequences of his greed with confinement in a federal prison.”

The statement released by the D.C. U.S. Attorney’s Office says Gaughan’s work at the Archdiocese of Washington, which oversees churches and Catholic schools in D.C. and Maryland, included overseeing services such as anti-bullying programs, crisis intervention, and professional development efforts at approximately 95 Catholic schools.

“Beginning in at least June 2010 and continuing through April 2018, Gaughan caused the Archdiocese to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to Archdiocese students and families,” the statement says. It says he concealed his ownership and control of three companies that billed the Archdiocese for services the fake companies never performed.

The statement says Gaughan targeted the COVID-related Federal Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program for his fraud scheme in which he allegedly stole more than $2.1 million. It points to evidence gathered by the FBI and the IRS showing that Gaughan created at least nine fake companies to apply for COVID relief loans that, under the relief programs, do not have to be repaid.

Charges filed in court show that most of the fake companies Gaughan created purported to provide support for animals, using such names as Service Dog of America, Inc. and Therapy Dog Incorporated.

“Gaughan made false representations to receive the loan funds, including forged paperwork and bank records,” the U.S. Attorney’s statement says. “Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger, and a rowhouse in Northeast Washington,” according to the statement.

A sentencing memorandum filed in court by prosecutors in August called on the judge to hand down a sentence of 78 months in prison, which is what the judge handed down at the Sept. 2 sentencing. The sentencing memo also notes that Gaughan agreed in his plea deal to pay restitution in the amount of $2,620,665.99, a higher amount than the amount prosecutors initially said he stole through the government relief programs and from the Archdiocese of Washington. 

“The higher amount includes additional victim requests made after the entry of the plea that should be awarded as mandatory restitution,” the sentencing memo says.

The memo makes no mention of whether Gaughan has the financial ability to pay that amount.

Property records from the D.C. Office of Tax and Revenue show that the townhouse that Gaughan allegedly bought with stolen and embezzled funds at 112 V St., N.E. in June 2020 for $1,089,000 was sold by the city in a tax sale in August of this year. The city property records show the owner, which was identified as 112 V St., NE Trust, was $24,596 in arrears in property taxes. The Blade couldn’t immediately determine whether Gaughan or someone else owned the 112 V St., NE Trust company.

Court records also show that Gaughan’s attorney, Jonathan N. Rosen, filed a motion in court on Sept. 15 requesting that Gaughan be placed in the Federal Correctional Institution prison in Morgantown, W.Va. “and that the defendant be allowed to self-surrender after the restitution hearing in these matters,” which is scheduled for Nov. 15. 

Although the public court records do not show whether Gaughan was ordered to begin his prison sentence at the time of the Sept. 2 sentencing, the motion by his attorney suggests he may not have been sent to jail at the time the motion was filed on Sept. 15.

Rosen couldn’t immediately be reached for comment.

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District of Columbia

Bowser appoints first nonbinary person to Cabinet-level position

Peter Stephan named Office of Disability Rights interim director

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The Wilson Building (Bigstock photo by Leonid Andronov)

D.C. Mayor Muriel Bower has named longtime disability rights advocate Peter L. Stephan, who identifies as nonbinary, as interim director of the D.C. Office of Disability Rights.

The local transgender and nonbinary advocacy group Our Trans Capital and the LGBTQ group Capital Stonewall Democrats issued a joint statement calling Stephan’s appointment an historic development as the first-ever appointment of a nonbinary person to a Cabinet-level D.C. government position.

“This milestone appointment recognizes Stephan’s extensive expertise in disability rights advocacy and marks a historic advancement for transgender and nonbinary representation in District government leadership,” the statement says.

The statement notes that Stephan, an attorney, held the position of general counsel at the Office of Disability Rights immediately prior to the mayor’s decision to name him interim director.

The mayor’s office didn’t immediately respond to a question from the Washington Blade asking if Bowser plans to name Stephan as the permanent director of the Office of Disability Rights. John Fanning, a spokesperson for D.C. Council member Anita Bonds (D-At-Large), said the office’s director position requires confirmation by the Council.

Stephan couldn’t immediately be reached for comment.

“At a time when trans and nonbinary people ae under attack across the country, D.C. continues to lead by example,” said Stevie McCarty, president of Capital Stonewall Democrats. “This appointment reflects what we have always believed that our community is always strongest when every voice is represented in government,” he said.

“This is a historic step forward,” said Vida Rengel, founder of Our Trans Capital. “Interim Director Stephan’s career and accomplishments are a shining example of the positive impact that trans and nonbinary public servants can have on our communities,” according to Rangel. 

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District of Columbia

Capital Stonewall Democrats set to celebrate 50th anniversary

Mayor Bowser expected to attend March 20 event

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Mayor Bowser is expected to attend the Capital Stonewall Democrats 50th gala. (Blade file photo by Michael Key)

D.C. Mayor Muriel Bowser, members of the D.C. Council, and local and national Democratic Party officials are expected to join more than 150 LGBTQ advocates and supporters on March 20 for the 50th anniversary celebration of the city’s Capital Stonewall Democrats.   

 A statement released by the organization says the event is scheduled to be held at the Pepco Edison Place Gallery building at 702 8th St., N.W. in D.C.

“The evening will honor the people who built Capital Stonewall Democrats across five decades – activists who fought for rights when the odds were against them, public servants who opened doors and refused to let them close, and a new generation of leaders ready to carry the work forward,” the statement says.

Founded in 1976 as the Gertrude Stein Democratic Club, the organization’s members voted in 2021 to change its name to the Capital Stonewall Democrats.

Among those planning to attend the anniversary event is longtime D.C. gay Democratic activist Paul Kuntzler, 84, who is one of the two co-founders of the then-Gertrude Stein Democratic Club. Kuntzler told the Washington Blade that he and co-founder Richard Maulsby were joined by about a dozen others in the living room of his Southwest D.C. home at the group’s founding meeting in January 1976.

He said that among the reasons for forming a local LGBTQ Democratic group at the time was to arrange for a then “gay” presence at the 1976 Democratic National Convention, at which Jimmy Carter won the Democratic nomination for U.S. president and later won election as president.

Maulsby, who served as the Stein Club president for its first three years and who now lives in Sarasota, Fla., said he would not be attending the March 20 anniversary event, but he fully supports the organization’s continuing work as an LGBTQ organization associated with the Democratic Party.

Steven McCarty, Capital Stonewall Democrats’ current president, said in the statement that the anniversary celebration will highlight the organization’s work since the time of its founding.

 “Capital Stonewall Democrats has been fighting for LGBTQ+ political power in this city for 50 years, electing people, training organizers, holding this community together through some really hard moments,” he said. “And right now, with everything going on, that work has never mattered more. This gala is the first moment of our next chapter, and I want the community to be a part of it.”

The statement says among the special guests attending the event will be Democratic National Committee Vice Chair Malcolm Kenyatta, who became the first openly gay LGBTQ person of color to win election to the Pennsylvania General Assembly in 2018.

Other guests of honor, according to the statement, include Mayor Bowser; D.C. Council member Zachary Parker (D-Ward 5, the Council’s only gay member; D.C. Council member Anita Bonds (D-At-Large); Earl Fowlkes, founder of the  International Federation of Black Prides; Vita Rangel, a transgender woman who serves as Deputy Director of the D.C.  Mayor’s Office of Talent and Appointments; Heidi Ellis, director of the D.C. LGBTQ Budget Coalition; Rayceen Pendarvis, longtime D.C. LGBTQ civic activist; and Phillip Pannell, longtime D.C. LGBTQ Democratic activist and Ward 8 civic activist.

Information about ticket availability for the Capital Stonewall Democrats anniversary gala can be accessed here: capitalstonewalldemocrats.com/50th

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District of Columbia

Owner of D.C. gay bar Green Lantern John Colameco dies at 79

Beloved businessman preferred to stay ‘behind the scenes’

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John Colameco, owner of the Green Lantern, died of undisclosed causes.

John Colameco, owner of the popular D.C. gay bar Green Lantern, has died, according to a March 7 announcement posted on the bar’s website and Instagram account. The announcement didn’t provide a date of his passing or a cause of death.

Green Lantern manager Howard Hicks said Colameco was 79 at the time of his passing.

“It is with great sadness that Green Lantern announces the death of our beloved owner, John Colameco,” the announcement says. “Most of our patrons might have heard John’s name, but might not have known his face,” it says.

“He was a ‘behind-the-scenes’ kind of guy who avoided the limelight,” the announcement continues. “He preferred to stay in the back of the house with staff and team ensuring everything was running smoothly so that everyone out front was having a good time.”

The announcement adds, “As a veteran and businessman, John wasn’t a member of the LGBTQ + community, but he was one of the best damn allies our community has ever had.”

It says he “long provided spaces for the queer community to come together” since the 1990s when he owned and operated a popular restaurant on 17th Street, N.W. called Peppers.

According to the announcement, Colameco and his then business partner Greg Zehnacker opened the Green Lantern in 2001 in an alley off of 14th Street, N.W., between Thomas Circle and L Street, N.W. 

The announcement points out that the Green Lantern first opened in the same location in the early 1990s before it later closed when the original owners decided to purchase and open other bars, one of which was the gay bar Fireplace near Dupont Circle. Colameco and Zehnacker were able to reopen the bar with the Green Lantern name.

“When Greg died unexpectedly in February 2014, John remained steadfastly committed to carrying on their vision and ensuring that Green Lantern remained part of the fabric of D.C.’s queer community,” the announcement says.

“Over the years, through Green Lantern, John has provided support to many community organizations, most notably Stonewall Sports, the Gay Men’s chorus of Washington, and ONYX Mid-Atlantic with Green Lantern serving as a gathering hub for their activities,” it states.

The announcement adds that Colameco’s family was planning a memorial for him in his hometown of Philadelphia.

“His Green Lantern family will celebrate his life by operating the bar as usual and we encourage you to stop by and join us,” it says. “Community coming together and having a good time – it’s exactly what John would want.”

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