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
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.
āFor 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,ā said U.S. Attorney for D.C. Matthew M. Graves in a statement released at the time of the sentencing.
āHe went to great lengths to conceive, carry out, and conceal his crimes,ā Graves said. āNow, he will be facing the consequences of his greed with confinement in a federal prison.ā
The statement released by the D.C. U.S. Attorneyās Office says Gaughanās 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.
āBeginning 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,ā 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.
āGaughan made false representations to receive the loan funds, including forged paperwork and bank records,ā the U.S. Attorneyās statement says. āGaughan 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,ā 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.
āThe higher amount includes additional victim requests made after the entry of the plea that should be awarded as mandatory restitution,ā 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 couldnāt immediately determine whether Gaughan or someone else owned the 112 V St., NE Trust company.
Court records also show that Gaughanās 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. āand that the defendant be allowed to self-surrender after the restitution hearing in these matters,ā 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 couldnāt immediately be reached for comment.
District of Columbia
Whitman-Walker names new CEO for Health System unit
Heather Aaron credited with advancing LGBTQ health for seniors
Whitman-Walker Health, D.C.ās longtime LGBTQ and HIV health services provider, announced on March 26 that it has appointed Heather Aaron, a health care educator and executive for more than 30 years, as the new CEO for Whitman-Walker Health System.
Whitman-Walker Health System, a division of Whitman-Walker, among other things, advances the mission of Whitman-Walker through expanding its financial and fundraising capacity through the Whitman-Walker Foundation; the Whitman-Walker Institute, which conducts HIV-related research; and the Whitman-Walker Health System Real Property Holdings, according to a write-up on the Whitman-Walker website.
In a press release announcing the appointment, Whitman-Walker Health System Board Chair Ann Bonham called Aaron a ādynamic and collaborative leader that will help us to realize the vision and full potential of our health system ā¦ building revenue and growth opportunities that will further Whitman-Walkerās care, advocacy, education, and research goals in partnership with Naseema Shafi, CEO of Whitman-Walker Health.ā
The Whitman-Walker Health System CEO position became open in April 2023 when former Health System CEO Dr. Ryan Moran left the position to become Deputy Secretary of Health and Healthcare Finance for the State of Maryland. Whitman-Walker named Cindy Lewin, a healthcare specialist with nonprofit organizations, as interim CEO while it conducted a national search for a permanent CEO.
āHeather has spent her entire career in health care, making a difference for the communities where she has served as Health Care Executive and Educator for more than thirty years,ā the Whitman-Walker announcement of her appointment says. āShe has worked tirelessly to develop diversity, equity, and inclusion in all her work,ā it says, adding that her work experience includes services for members of the LGBTQ community and people with HIV/AIDS.
āIn Connecticut, she operated the only continuum of care model which included a nursing home, independent living apartments and case management in one centralized community,ā the announcement continues. āThe care model was specifically designed for people living with HIV and AIDS,ā it says.
āIām thrilled to be joining the Whitman-Walker family in service to the community,ā Aaron said in the announcement press release. āI look forward to getting to know staff, patients, and engaging with D.C. in a meaningful way,ā she said.
District of Columbia
Howard University, Gilead working to encourage HIV prevention
āA strategic, community-centered approach to address systemic disparitiesā
Howard University earlier this month hosted an event to support efforts in the Washington, D.C. area to spread HIV/AIDS awareness.
The event highlighted a collaboration between Howard University and Gilead Sciences’ new Setting the P.A.C.EĀ (Prevention ā Arts and Advocacy ā Community ā Education)Ā initiative, which addresses HIV prevention, health equity and anti-stigma efforts for both cisgender and transgender Black women and girls.Ā
āBy taking a strategic, community-centered approach to address systemic disparities and improve overall health outcomes, Gilead continues its commitment to advancing health equity for Black cisgender and transgender women and girls in the U.S. who continue to be disproportionately impacted by the HIV epidemic,ā said Deborah H. Telman, executive vice president of Corporate Affairs and General Counsel, Gilead Sciences.
Gilead’s Setting the P.A.C.E. Initiative is a three-year, $10 million commitment to increase HIV prevention, anti-stigma and health equity efforts for Black cisgender and transgender women and girls in the United States. Howard is one of Setting the P.A.C.E.ās grantees and through the program, it conducts HIV prevention training and informational resources, arts and advocacy, community and nonprofit capacity building, and education.
In 2021, Black women accounted for 53% of new HIV diagnoses among women aged 16 and older in the United States, despite comprising only 14% of the women living in the country, according to the Centers for Diseases Control & Prevention. Additionally, Black transgender women are likelier to be diagnosed with HIV and are likelier, more than their peers, to go undiagnosed and untreated.
Through Setting the P.A.C.E., high-impact organizations and projects working to improve the HIV landscape receive specialized help that assists them in tackling barriers to equitable HIV health outcomes, and in receiving funding to support a variety of impactful projects to expand programs that provide culturally responsive HIV care training and leverage arts and media to engage local communities and address stigma.
Because of the urgency of HIV awareness in the Black queer community, more than 75% of the organizations selected for P.A.C.E grants are led by Black women. Funding is directed toward initiatives spearheaded by Black women.
āGileadās Setting the P.A.C.E. initiative will help empower organizations to expand custom programs tailored toward fighting stigma and expanding access to HIV care in their communities,ā said Telman.
District of Columbia
D.C. Council member proposes LGBTQ senior housing in Ward 2
Calls on mayor to include funding for project in FY 2025 budget
D.C. Council member Brooke Pinto (D-Ward 2) is calling on Mayor Muriel Bowser to include $22.9 million in the cityās Fiscal Year 2025 budget to establish what Pinto calls the cityās āfirst affordable housing for LGBTQQIA+ seniors in Ward 2.ā
In a Feb. 27 letter to Bowser proposing specific amounts of city funding on a wide range of issues, including the Councilās recently passed crime bill, Pinto told Bowser the need for affordable housing for LGBTQ seniors is pressing.
āHaving faced decades of workplace and healthcare discrimination and been barred for most of their lives from marrying or having children, our LGBTQQIA+ seniors are more likely to face financial and health challenges and need housing and social supports as they age,ā Pinto states in her letter.
āAs the Council-funded task force meets to identify a site for a Ward 2 Senior Center, we should endeavor to locate a building that serves a dual purpose: a Ward 2 Senior Center as well as LGBTQQIA+ senior housing,ā Pinto states. DHCD [D.C. Department of Housing and Community Development] should leverage federal Community Development Block Grants funding to produce at least 80 affordable units for low-and-moderate-income seniors and provide meals and other supportive services,ā she wrote.
Pinto was referring to legislation passed by the D.C. Council and signed by the mayor creating a Wards 2 and 3 Senior Wellness Center Feasibility and Planning Task Force, which is assigned to āadvise and guideā the mayor, the Council, and other city government agencies in the development of senior wellness centers in Wards 2 and 3.
The task force, whose members are appointed by the mayor and the Council, has already met twice and has discussed one possible building in the Dupont Circle area that could be considered for a seniors wellness center and residence for seniors, according to John Fanning, a member of the staff of D.C. Council member Anita Bonds (D-At-Large). Bonds serves as chair of the Councilās Committee on Executive Administration and Labor, which oversees city programs pertaining to senior citizens.
Fanning, who is gay and a longtime D.C. LGBTQ rights advocate, and gay D.C. civic activist and former Dupont Circle Advisory Neighborhood Commissioner Mike Silverstein, are among those who have been appointed to the senior wellness center task force.
Silverstein said LGBTQ community members in the Dupont Circle area are suggesting the task force and the mayor consider arranging for the city to purchase a building owned by Baltimoreās Johns Hopkins University at 1740 Massachusetts Ave., N.W., for the senior facility.
The university used the building for many years for its various educational programs before it moved its programs and offices into a newly renovated building on Pennsylvania Avenue, N.W., near the U.S. Capitol.
āSince the mayorās budget hasnāt been released yet, thereās no telling whether thereās dedicated funding included for the purchase of this property,ā Fanning told the Washington Blade.
A spokesperson for Johns Hopkins Universityās D.C. office couldnāt immediately be reached to determine the price the university is asking for the building, which it announced last year it was planning to sell. The D.C. Office of Tax and Revenue states on its website that the 8-story building has been assessed for 2024 at a value of $35,894,220.
āCouncil member Pintoās request to the mayor is a vitally important first step toward establishment of LGBT+ affirmative housing in the historic epicenter of our community,ā Silverstein told the Blade. āThe need is clear, as so many of our seniors are struggling to age in place with soaring rents and inflation eating away at savings or just dealing with the effects of social isolation that comes with the loss of a partner or close friends,ā Silverstein said.
āThereās no question the Districtās budget is very tight and this project as envisioned would be a very heavy lift,ā Silverstein added. āBut just putting this request on the table and perhaps setting up a task force to seek a way forward is a giant step forward,ā he said.
Silverstein noted that a city-funded senior housing facility under existing law would have to be open to all city seniors, not just LGBTQ seniors, but he said it would be āLGBT+ affirmative,ā making it an important and welcoming place for LGBTQ seniors.
News surfaced this week that Bowser, who had planned to release her budget proposal to the Council this week, needed more time to finalize the budget and it would be released sometime later.
Mayoral spokesperson Daniel Gleick told the Blade last week that ideas like the Pinto LGBTQ-supportive housing proposal would be part of the budget process discussions by the mayor and the Council in the coming weeks.
Pintoās proposal for an LGBTQ-supportive senior housing facility in Ward 2 comes six months after Mayor Bowser and other city officials participated in a groundbreaking ceremony launching the construction of Maryās House for Older Adults, which is expected to be the cityās first home for LGBTQ seniors. The Maryās House facility, which is located in the cityās Fort Dupont neighborhood in Ward 7, will include 15 single-occupancy residential apartments, compared to the 80 apartments that Pintoās proposal calls for.
LGBTQ rights advocates nevertheless have called the Maryās House Project, which is receiving city funds as well as support from private donors, an important project organized and founded by longtime LGBTQ community advocate Imani Woody, who is expected to operate the facility when it opens.
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