Scandal and Grief in the Imperial Court

“This has to be a mistake,” Empress Gabbriella But’zin thought aloud to other members of the Imperial Court of the Rocky Mountain Empire. “Something easy, something simple to fix.” The numbers on the tax return the nonprofit posted to the Secretary of State’s website didn’t match the numbers they reported on their profit-and-loss statement and, as any good Empress knows, bad math can yank a nonprofit’s status from underneath it. “Maybe one or the other is 
just wrong,” she said in good faith.

So, headache or not, the gang huddled to crunch some figures before it slowly and agonizingly dawned on them — there was a thief in their midst.

The Court immediately launched an internal audit. They pored over their QuickBooks and financial statements, and “that’s when we felt we were being embezzled,” she says. The fur flew. “As soon as we found out what was going on, this individual had all sorts of charges leveled by many of our members,” she tells Out Front. “But then we felt they weren’t being given due process, so we suspended their position until our audit confirmed everything.”

And there were tears. “Lots of tears,” she admits as we wait for our food on a quiet Hamburger Mary’s Wednesday. “This was a person in a position of trust — not an entertainer, no, just a general member, but someone we trusted.” And you can imagine that we’re talking about a tight-knit group, being an all-volunteer organization whose members frequently use their own money to put on fundraisers for Freedom Service Dogs of America, Colorado AIDS Project, Parkinson’s charities, and so many others. To think someone felt more entitled to the contents of the coffers and actually broke the trust they were given sent shockwaves of anger and sadness throughout the team.

“When we finally had the proof, no one could believe it,” she says. “This was a beloved member and someone you couldn’t see doing this. As a volunteer organization, you’re kind of always putting yourself out there for this to happen, but we were still like, ‘You’ve gotta be kidding.’”

Keeping the figure ambiguous, the dollar discrepancy is said to be more than a few thousand dollars, a sum that could give two military veterans, kids with autism, and/or people with mobility issues a service dog to regain a foothold on their independence; or, perhaps, it could’ve given two years’ worth of HIV/AIDS medication to five people in need. Instead, the Empress suspects it was spent on, among other items, personal trips that “weren’t cheap.” The theft was through electronic transactions via the organization’s credit account and “just plain taking money.”

After the results of the audit were presented, the individual accepted responsibility for the trespasses. Further: “They gave us a letter saying they acted alone.”

No matter how hard I press, the Empress won’t reveal any names. Suffice it to say, the individual will no longer work alongside the Imperial Court. “Per our bylaws, no one can have their title removed — they’re permanent,” she says. The closest an ousted member gets to being written off for good is getting suspended. “So we suspended them.”

The missing amount could’ve given two vets or two autistic children a service dog; or, perhaps, it could’ve given two years’ worth of HIV/AIDS medication to five people in need.

All the evidence, including the confession letter, was turned over to the Denver District Attorney’s office. As they’re a nonprofit, the Court is obligated to report what happened. “Because we’re a 501(c)3, we don’t have the option not to do that — it can affect our status with the state. We have to be able to show the IRS our loss and how it all transpired.” Though Empress Gabbriella says it could be two to three weeks before the DA’s office makes any moves, the Court has “provided so much information [to them] that the case can be fast-tracked.”

Then the group got together to close up any loopholes that may be abused in the future. “We’ve altered internal processes and instituted trackable things. We’ve given new responsibilities to the treasurer and the CEO, we have another member who is auditing monthly, and we’ll be doing quarterly followups,” she says. “Anyone who touches any of our money is bonded, and the individual pays for it.”

Getting bonded is a process that helps protect the organization’s assets in a way not entirely unlike insurance against theft. Those who want to deal with the financial end of the organization will now come out of pocket around $180 for the bonding. And par for the course, these volunteers will gladly pay their dues. That’s how much it means to them to keep the integrity up and the ball rolling. “We’ll also be looking at an outside auditor, a third-party, non-vested person. If we had that in the first place, we might not have been in the situation we’re in.”

They’ve even resolved to go back a few years for audits, just to make sure any past discrepancies — should they exist — are found.
But the Imperial Court isn’t stopping there. Because the origins of the organization go beyond the Rocky Mountains, there’s an additional higher power that needs answers.

The International Imperial Court System, founded in 1965, spans Canada, the United States, and Mexico. Our beloved Rocky Mountain chapter is only one of 68 that work year-round to provide assistance to thousands of those going without. The Empress is visibly upset at the idea that shame has befallen the prestigious Rocky Mountain wing of the International Imperial Court System, and it shows on her face.

“We’re in jeopardy,” she says heavily. The executive director of the International Imperial Court System — known formally as Her Most Imperial Majesty, The Queen Mother I of the Americas, Empress Nicole the Great — is flying in next week from San Francisco. “We’ll be presenting everything to her and showing her the newly formed ethics process.”

When asked what it could mean if the meeting doesn’t go well: “The consequence is that we could be sanctioned, and if we are, they take away our titles. It all depends on what they feel is proper punishment. We could also get probation.”

And though she’s gravely disappointed that someone took advantage of the group’s trust, the Empress Gabbriella is willing to fall on the sword. Still:

“The unknown is always scary. We hope we’re doing the right things and showing our due diligence. We have to persuade the [International Imperial Court System] that our actions are being changed, and that the change will last.”
But until then, it’s on with the show.

“This individual may suffer down the road, but ultimately our organization is on the line for all of our charities,” she says without blinking. “Our top priority is that every single dollar of what was promised [to our charities] gets paid. If we’ve got to go out and do 42 shows, 37 bake sales, and 48 car washes, we will. We have to fulfill our commitment to our charities. If we don’t have the ability to raise money for them, where will they get the money?” Her tone feels suddenly hot.

“[My Emperor, Richard Brendlinger, and I] feel an intense responsibility to make things right because this happened on our watch. When you’re a leader, it falls on our shoulders. To blame someone for this isn’t going to fix our problems and change what happened, and if we can show the community that we’re sincere, hopefully they’ll see our commitment is still there.”

Indeed there’s a fire in the eyes of the Empress, and as noble as it is to accept responsibility, history has shown it can happen to the best of the best. Well-meaning businesses and organizations the world over have fallen prey to unscrupulous people who’ve slithered their way into the treasury. It’s even happened to the Imperial Court of the Rocky Mountain Empire before.

“The first time was 20, 25 years ago, before we were a 501(c)3,” the Empress says. “All the money was paid back instead of the individual being arrested. We don’t have that option now.”

I ask if they might’ve accepted restitution instead had they not been a 501(c)3. She shakes her head. “No,” she admits. “Not with how much was taken.”

The hardship is felt throughout everyone at the organization — not just the figureheads. “All of our volunteers are out there raising the money and working,” she says, and the fire is back. “They definitely have a sense that this is their watch, their leadership. They want people to know we’re not just silly drag queens; that we’re an organization with standards trying to do the right thing.” She settles a touch. “Our community partners — especially the bars — have been incredible.” She cites Exdo, Charlie’s, Hamburger Mary’s, Tracks, and Broadway’s in particular. “They’ve been amazing and have all asked how they can help.”

Additionally, the DA’s office has been really communicative and up to date with the process.

“We’ve asked that if they have to arrest this person, please don’t arrest them in front of their kids. We’re trying to be as decent as we can. More than likely we’ll be dealing with restitution — to their credit, this person isn’t disavowing what they’ve done,” she says. You can see how deeply this has affected her, but she once again reiterates that they were literally left with no choice. “This person has to try and get through this as quickly as possible.”

The air is heavy, but after a few moments: “We’re going to get through this. We owe it to the community. We have so many concerned with the wellbeing of our organization, and 41 years of past emperors and empresses behind us. Everyone touched by this has been victimized, but we’ll get through it.”

UPDATE: On Sept. 23, the Empress wrote to 
our office:

“After a review of our process, the Executive Director has cancelled her trip to Denver. She feels that our chapter is handling the situation to the best of our abilities! She will be given an update in about a month and the Ethics Committee will give its final recommendation. At this time, it looks like our chapter will not get any penalties.”