Local

DC trans group files for bankruptcy

T.H.E. seeks Chapter 11 protection; reports $566,000 in debt

Published

11 years ago

July 11, 2013

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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Virginia

Man went on ‘homophobic rant’ inside Va. pub that displayed Pride flags

Suspect arrested on charges of public intoxication, assaulting police officer

Published

53 mins ago

July 3, 2024

Lou Chibbaro Jr.

Justin Wayne Hendricks was arrested in the case. (Photo courtesy of the Fairfax County Adult Detention Center)

The Hawk & Griffin British Pub located in Vienna, Va., posted a message on Facebook last week saying a man was arrested after going on a “homophobic rant” inside the pub on June 28 when he saw that LGBTQ Pride flags were displayed at the pub for Pride month.

“Last night we had an incident here at the pub when a man came off the street to accost patrons in our beer garden because of our flags displayed for pride month,” the Hawk & Griffin Facebook posting says. “He then spit on our windows and came inside to confront our staff and patrons with homophobic rants,” the posting continues.

“Our manager and staff handled the situation very professionally and police were called to investigate and later arrested a man a couple of blocks away,” the message says. “We want to thank the Vienna Police Department for their quick response. We are and will continue to be community focused and we will never stop working to create and maintain a place of inclusion and tolerance,” the statement concludes.

Vienna police charged Justin Wayne Hendricks, of no known address, with misdemeanor counts of being “drunk in public” and providing false identification to a police officer and with a felony count of assault on a police officer. A police spokesperson said Hendricks was also found to be in violation of an outstanding arrest warrant from Alexandria, Va., related to a prior charge of failing to register as a sex offender.

The spokesperson, Juan Vazquez, said Hendricks is currently being held without bond at the Fairfax County Adult Detention Center. Online records for the Fairfax County General District Court show that Hendricks is scheduled to appear at a preliminary hearing on Oct. 9.

“On Friday, June 28, around 9:28 p.m. the Vienna Police Department responded to reports of an intoxicated individual threatening customers of the Hawk & Griffin,” a Vienna police statement says. “Upon the arrival of the officers the individual had already left the premises but was promptly located at an address nearby,” according to the statement.

The statement adds that Hendricks was subsequently charged with being drunk in public, providing false information about his identity to police, and assault on a police officer along with being served with the outstanding warrant related to the prior charge in Alexandria of failing to register as a sex offender.

Details of the prior sex offender charge couldn’t immediately be obtained from online court records. However, the online records show that Hendricks has at least a dozen or more prior arrests between 2014 and 2023 on charges including public intoxication, trespassing, and failing to register as a sex offender.

Police spokesperson Vazquez said it would be up to prosecutors with the office of the Fairfax County Commonwealth’s Attorney to determine if a subsequent hate crime related charge would be filed in the case.

Virginia

Parades, community events held to mark Pride Month in Va.

Upwards of 30,000 people attended PrideFest in Norfolk on June 22

Published

20 hours ago

July 2, 2024

Sean Koperek

Shi-Queeta-Lee at Arlington Pride in Arlington, Va., on June 29, 2024. (Washington Blade photo by Michael Key)

Activists across Virginia last month held a series of events to mark Pride Month.

Hampton Roads Pride, a volunteer-run organization founded in 1997, held 37 different Pride events throughout the region in June.

Their biggest event, PrideFest, which is part of their larger three day event, Pride Weekend, celebrated its 36th anniversary on June 22. Pride Weekend took place from June 21-23 and began with a block party at NorVa in Norfolk.

PrideFest took place at Town Point Park, and an estimated 30,000 people attended. More than 70 venders participated, while Todrick Hall and Mariah Counts are among those who performed.

Another PrideFest event with a DJ in the afternoon and live music at night took place in Virginia Beach on June 23. Congressman Bobby Scott and U.S. Sen. Tim Kaine (D-Va.) are among those who attended Pride events in Suffolk on June 30.

Norfolk Mayor Kenneth Alexander, along with members of the Norfolk and Virginia Beach City Councils, also attended the Pride events in their respective cities. Jamar Walker, the first openly gay federal judge in Virginia, also took part.

“You know people all throughout Pride Month, at all of our various events, tell me all kinds of stories about their own experiences and the past of this community … and some of our older folks especially, remember when we couldn’t have this,” Hampton Roads Pride President Jeff Ryder told the Washington Blade on Monday during a telephone interview.

“It was a great year,” he added. “It was a big achievement for us to have unique celebrations in each of our seven communities. Each of these cities is so different from one another, but to be able to create a Pride celebration that’s unique in each of those places was really great, and I think really well received by folks who may not have felt represented previously. We’re always trying to do better, to embrace every aspect of our community, and take a big step forward there this year.”

State Dels. Adele McClure (D-Arlington County) and Alfonso Lopez (D-Arlington County) are among those who spoke at Arlington Pride that took place at Long Bridge Park on June 29. The Fredericksburg Pride march and festival took place the same day at Riverfront Park in Fredericksburg.

Republican Virginia Gov. Glenn Youngkin on June 10 hosted a Pride Month reception in Richmond.

Youngkin in previous years has hosted Pride Month receptions, even though Equality Virginia and other advocacy groups have criticized him for supporting anti-LGBTQ bills.

The Republican governor in March signed a bill that codified marriage equality in Virginia. Youngkin last month vetoed a measure that would have expanded the definition of bullying in the state.

Baltimore

Baltimore street named in honor of trans activist

Iya Dammons is founder of support groups Safe Haven in Baltimore, D.C.

Published

2 days ago

July 1, 2024

Lou Chibbaro Jr.

Iya Dammons was honored last week in Baltimore. (Photo courtesy Iya Dammons)

Baltimore city officials and LGBTQ activists participated in a ceremony on June 29 officially dedicating the renaming of a street in honor of transgender woman Iya Dammons, who founded and serves as executive director of the LGBTQ services organization Maryland Safe Haven.

A section of Baltimore’s 21st Street at the intersection of North Charles Street, where the Maryland Safe Haven offices are located, has been renamed Iya Dammons Way.

The ceremony took place six years after Dammons founded Maryland Safe Haven in 2018 and one year after she launched a Safe Haven operation in D.C.in 2023 located at 331 H St., N.E.

A statement on its website says Safe Haven provides a wide range of supportive services for LGBTQ people in need, with a special outreach to Black trans women “navigating survival mode” living.

“Through compassionate harm reduction and upward mobility services, advocacy support, and community engagement, we foster a respectful, non-judgmental environment that empowers individual agency,” the statement says. “Our programs encompass community outreach, a drop-in center providing HIV testing, harm reduction, PrEP, medical linkage, case management, and assistance in accessing housing services,” it says.

Among those participating in the street renaming ceremony were Baltimore City Council member Zeke Cohen, interim director of Baltimore Mayor Brandon Scott’s Office of LGBTQ Affairs Alexis Blackmon, and Dominique Morgan, an official with the national foundation Borealis Philanthropy, which provides financial support for transgender supportive nonprofit organizations, including Safe Haven.

“This is a significant achievement and historic moment for our city,” a statement by Maryland Safe Haven announcing the ceremony says. “Iya Dammons has been a tireless advocate for transgender rights and has worked tirelessly to provide safe spaces and resources for transgender individuals in our city,” it says. “This honor is well-deserved, and we are thrilled to see her contributions recognized in such a meaningful way.”