Local
Payroll scam targets transgender employees
Fraudulent emails ask for change in bank account for direct deposits
Email messages claiming to be from an employee that were sent in November to the LGBT+ Counseling Collaborative in Arlington, Va., and to a yoga studio in Middleton, Del., requested that the employees’ direct deposit paycheck be sent to a new bank account.
According to an official with the LGBT+ Counseling Collaborative and the employee at the yoga studio, the emails had the employees’ correct names, including a photo, and included a bank account number for the Green Dot Bank where the email messages said the salary payments should be deposited.
Yoga studio teacher SK Smigiel, who identifies as transgender and uses the pronouns she/they, and LGBT+ Counseling Collaborative official S.C. Neely said their organizations checked with the employees to verify whether they wanted to change their bank accounts and quickly learned that the email messages were fake and were an attempt to steal the salary payment of the employees.
Smigiel told the Washington Blade she posted information about what happened on her Instagram page and received information from people across the country saying the same scam happened to others and at least some lost money.
“I shared that this happened to us,” Smigiel said in referring to her social media postings about the attempted scam. “And we got up to 12 other people across the country in the last month saying this has happened to them. And many of them lost money,” Smigiel told the Blade.
“So, their employers did not catch this before it went through,” she said. “So, now we are having active harm happening to people, and from what I’m seeing across the board, police are not investigating or doing anything to take action.”
According to Smigiel, the employees being targeted by this scam appear to be transgender, including the employee of the LGBT+ Counseling Collaborative in Arlington.
“For me it was the same thing,” she said. “I’m the only trans employee at my company. And I’m not sure if these people are starting on social media to try to find trans people and their employment specifically. But it has only happened from what I’ve seen to the trans community specifically, which is interesting.”
Smigiel, who spoke to the Blade on Dec. 9, said she had not yet reported the attempted scam to police in Delaware, but she saved copies of the fake emails sent to her employer at the yoga studio, which included a bank account number for the Green Dot Bank.
“I’m kind of sitting on it, waiting to hear more from other people I’ve spoken to, because they’re from different districts across the country,” she said.
Nealy, however, said she did report the attempted scam to Arlington police and, much to her disappointment, she was told police declined to investigate the incident.
Arlington police spokesperson Ashley Savage told the Blade police have documented the incident but confirmed a decision was made not to open an investigation at this time.
“Given it was an attempted fraud, there was no fraud that was committed,” Savage told the Blade. “And based on call volume, we have to evaluate the information that we receive regarding cases and whether or not there is information to follow up on,” she said.
Asked whether Arlington police could have followed up on this case, especially since the fake email messages sent to the Arlington based LGBT+ Counseling Collaborative included the name of a bank and a bank account number, Savage said, “The information has been documented.”
She added, “We do work with a high volume of cases, especially with property-based crimes,” she said. “And we do evaluate whether or not there is a solvability factor for each one of them, unfortunately.”
The Blade contacted the Green Dot Bank, which describes itself on its website as a “branchless bank that operates primarily through retail distribution locations nationwide.” A spokesperson for the bank said the bank was “aware of and engaged on this matter” but could not provide specific details.
“For privacy and security reasons, we’re unable to share details about customer accounts or circumstances, or specifics on our work to combat fraud,” said Whit Chapman, Green Dot Bank’s director of communications. “However, we can confirm that account protection and fraud prevention are top priorities at Green Dot, and we work around the clock and invest heavily to identify, block and address fraudulent activity.”
District of Columbia
Rush reopens after renewing suspended liquor license
Principal owner says he’s working to resolve payroll issue for unpaid staff
The D.C. LGBTQ bar and nightclub Rush reopened and was serving drinks to customers on Saturday night, Dec. 20, under a renewed liquor license three days after the city’s Alcoholic Beverage and Cannabis Board suspended the license on grounds that Rush failed to pay a required annual licensing fee.
In its Dec. 17 order suspending the Rush liquor license the ABC Board stated the “payment check was returned unpaid and alternative payment was not submitted.”
Jackson Mosley, Rush’s principal owner, says in a statement posted on the Rush website that the check did not “bounce,” as rumors circulating in the community have claimed. He said a decision was made to put a “hold” on the check so that Rush could change its initial decision to submit a payment for the license for three years and instead to pay a lower price for a one-year payment.
“Various fees and fines were added to the amount, making it necessary to replace the stop-payment check in person – a deadline that was Wednesday despite my attempts to delay it due to these circumstances,” Mosley states in his message.
He told the Washington Blade in an interview inside Rush on Saturday night, Dec. 20, that the Alcoholic Beverage and Cannabis Administration (ABCA) quickly processed Rush’s liquor license renewal following his visit to submit a new check.
He also reiterated in the interview some of the details he explained in his Rush website statement regarding a payroll problem that resulted in his employees not being paid for their first month’s work at Rush, which was scheduled to take place Dec. 15 through a direct deposit into the employees’ bank accounts.
Several employees set up a GoFundMe appeal in which they stated they “showed up, worked hard, and were left unpaid after contributing their time, labor, and professional skills to Rush, D.C.’s newest LGBTQ bar.”
In his website statement Mosley says employees were not paid because of a “tax related mismatch between federal and District records,” which, among other things, involves the IRS. He said the IRS was using his former company legal name Green Zebra LLC while D.C. officials are using his current company legal name Rainbow Zebra LLC.
“This discrepancy triggered a compliance hold within our payroll system,” he says in his statement. “The moment I became aware of the issue, I immediately engaged our payroll provider and began working to resolve it,” he wrote.
He added that while he is the founder and CEO of Rush’s parent and management company called Momentux, company investors play a role in making various decisions, and that the investors rather than he control a “syndicated treasury account” that funds and operates the payroll system.
He told the Blade that he and others involved with the company were working hard to resolve the payroll problem as soon as possible.
“Every employee – past or present – will receive the pay they are owed in accordance with D.C. and federal law,” he says in his statement. “That remains my priority.”
In a follow-up text message to the Blade on Sunday night, Dec. 21, Mosley said, “All performers, DJs, etc. have been fully paid.”
He said Rush had 21 employees but “2 were let go for gross misconduct, 2 were let go for misconduct, 1 for moral turpitude, 2 for performance concerns.” He added that all of the remaining 14 employees have returned to work at the time of the reopening on Dec. 20.
Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14th Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker.
With at least a half dozen or more LGBTQ bars located within walking distance of Rush in the U Street entertainment corridor, Mosley told the Blade he believes some of the competing LGBTQ bars, which he says believe Rush will take away their customers, may be responsible along with former employees of “rumors” disparaging him and Rush.
Rehoboth Beach
Rehoboth’s Blue Moon is for sale but owners aim to keep it in gay-friendly hands
$4.5 million listing includes real estate; business sold separately
Gay gasps could be heard around the DMV earlier this week when a real estate listing for Rehoboth Beach’s iconic Blue Moon bar and restaurant hit social media.
Take a breath. The Moon is for sale but the longtime owners are not in a hurry and are committed to preserving its legacy as a gay-friendly space.
“We had no idea the interest this would create,” Tim Ragan, one of the owners, told the Blade this week. “I guess I was a little naive about that.”
Ragan explained that he and longtime partner Randy Haney are separating the real estate from the business. The two buildings associated with the sale are listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They are listed for $4.5 million.
The bar and restaurant business is being sold separately; the price has not been publicly disclosed.
But Ragan, who has owned the Moon for 20 years, told the Blade nothing is imminent and that the Moon remains open through the holidays and is scheduled to reopen for the 2026 season on Feb. 10. He has already scheduled some 2026 entertainment.
“It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” Ragan said, noting that he turns 70 next year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.”
He said there have been many inquiries and they’ve considered some offers but nothing is firm yet.
Given the Moon’s pioneering role in queering Rehoboth Beach since its debut 44 years ago in 1981, many LGBTQ visitors and residents are concerned about losing such an iconic queer space to redevelopment or chain ownership.
“That’s the No. 1 consideration,” Ragan said, “preserving a commitment to the gay community and honoring its history. The legacy needs to continue.” He added that they are not inclined to sell to one of the local restaurant chains.
You can view the real estate listing here.
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 Tristan Fitzpatrick on his new position as Digital Communications Manager with TerraPower. TerraPower creates technologies to provide safe, affordable, and abundant carbon-free energy. They devise ways to use heat and electricity to drive economic growth while decarbonizing industry.
Fitzpatrick’s most recent position was as Senior Communications Consultant with APCO in Washington, D.C. He led integrated communications campaigns at the fourth-largest public relations firm in the United States, increasing share of voice by 10 percent on average for clients in the climate, energy, health, manufacturing, and the technology. Prior to that he was a journalist and social media coordinator with Science Node in Bloomington, Ind.
Fitzpatrick earned his bachelor’s degree in journalism with a concentration in public relations, from Indiana University.
Congratulations also to the newly elected board of Q Street. Rob Curis, Abigail Harris, Yesenia Henninger, Stu Malec, and David Reid. Four of them reelected, and the new member is Harris.
Q Street is the nonprofit, nonpartisan, professional association of LGBTQ+ policy and political professionals, including lobbyists and public policy advocates. Founded in 2003 on the heels of the Supreme Court’s historic decision in Lawrence v. Texas, when there was renewed hope for advancing the rights of the LGBTQ community in Washington. Q Street was formed to be the bridge between LGBTQ advocacy organizations, LGBTQ lobbyists on K Street, and colleagues and allies on Capitol Hill.
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