Connect with us

Local

Metro Weekly publisher settles $1 million lawsuit

Agreement reached over debt, fraud allegation; IRS tax liens remain

Published

on

Metro Weekly — a local gay magazine published by Jansi LLC, which is owned by Randy Shulman — and Post-Newsweek Media, Inc., the company that owns the Washington Post, reached a settlement agreement on April 28 over a lawsuit in which Post-Newsweek alleged that Jansi and Shulman engaged in fraud to avoid paying a Post-Newsweek-owned printing company $85,000 for printing services.

The settlement came six days after a D.C. Superior Court judge presiding over the lawsuit denied a motion for summary judgment by Jansi and Shulman that called for dismissing the fraud charge on grounds that insufficient evidence existed to move forward with the charge.

The settlement agreement also came just over seven months after Judge Ramsey Johnson denied a separate motion by Jansi and Shulman seeking dismissal of the lawsuit.

The terms of the settlement between the two parties could not be found in the court records, indicating the parties chose to keep the terms confidential as is the case with many lawsuits.

Paul S. Thaler, the attorney representing Post-Newsweek, and John W. Karr and William G. McLain, the attorneys representing Jansi and Shulman, did not respond to the Blade’s request for comment on the case and the settlement.

McLain faxed a message to the Blade on May 27 saying Jansi and Shulman would consider responding to a Blade inquiry in writing if such a response was “deemed appropriate” by him but the magazine has a policy of not providing interviews to Blade reporters.

Jansi and Shulman’s attorneys have argued that the lawsuit was without merit, saying the printing debt was incurred by Isosceles Publishing, Inc., the corporation that owned and operated Metro Weekly up until November 2007.

The magazine’s attorneys have argued that a new corporation called Jansi LLC entered into a licensing agreement with Isosceles to publish and operate Metro Weekly beginning in November 2007. They maintain that Jansi, as a separate corporate entity, was not responsible for the debts and liabilities incurred when Metro Weekly was published and operated by Isosceles.

A past due bill of $85,000 from Comprint, a Gaithersburg, Md., company owned by Post-Newsweek, was for printing services incurred by Metro Weekly during the time Isosceles published the magazine, the lawyers have argued.

In its lawsuit filed in July 2010, Post-Newsweek charged Jansi LLC and Shulman, one of Jansi’s two shareholders, with breach of contract, saying they were responsible for the printing debt with Comprint.

The lawsuit also charged Jansi and Shulman with fraud for allegedly entering into the licensing agreement with Isosceles for the alleged purpose of evading debts and liabilities.

“Upon information and belief, Mr. Shulman, Jansi, and Isosceles entered into the 2007 License Agreement with the specific intention to evade Isosceles’ creditors while continuing to publish, and reap revenue from, Metro Weekly,” the lawsuit said. “As a direct result of the defendant’s fraud, plaintiff suffered damages in a sum to be proved at trial but expected to exceed $1,000,000,” the lawsuit said in its request for punitive damages.

‘Nearly $656,000’ in tax liens

In its court brief opposing Jansi and Shulman’s motion to dismiss the fraud charge, Post-Newsweek attorney Thaler cited Shulman’s testimony in a deposition in February in which Shulman acknowledged that he and Isosceles had yet to resolve an outstanding tax obligation with the IRS.

News of Isoceles’ tax liabilities surfaced last year when the Washington Business Journal reported that, “nearly $656,000 in federal and state tax liens have been filed against Isosceles.” Records from the D.C. Recorder of Deeds, which keeps track of tax liens, show that 21 federal, D.C., or unemployment tax liens had been filed against Isosceles Publishing between 1996 and 2010.

Thaler stated in his brief opposing Jansi and Shulman’s motion to dismiss the fraud charge that the tax liens were an indication that the licensing agreement between Isosceles and Jansi was conceived to enable Metro Weekly to evade its debts, a development, he said, that supports Post-Newsweek’s fraud claim.

In Jansi and Shulman’s August 2010 motion for summary judgment seeking to dismiss the lawsuit, Karr argued that Post-Newsweek’s breach of contract charge concerning the printing debt was invalid because, among other things, Post-Newsweek had brought the same charge in a separate lawsuit in 2009.

A judge ruled in Post-Newsweek’s favor in the earlier lawsuit and ordered Isosceles to pay the printing debt. Isosceles started making payments for the initial printing debt, which exceeded $100,000, for a while before stopping all payments. That prompted Post-Newsweek to file the second lawsuit last July, Thaler said in court papers.

Karr argued in his dismissal motion that the legal concept of “claim preclusion” or “issue preclusion” prohibits “relitigation in a subsequent proceeding of the same claim between the same parties or their privies.”

He also argued that Post-Newsweek failed to provide in its lawsuit the required “elements” indicating that fraud might have taken place to a sufficient degree that a fraud claim could move forward to trial.

D.C. Superior Court Judge Ramsey Johnson rejected those assertions, stating in a Sept. 13, 2010 ruling denying the motion for dismissal of the lawsuit that he was “satisfied that the Plaintiff’s complaint for fraud has been sufficiently pled.”

In its separate motion filed Feb. 23, 2011 seeking dismissal of the fraud charge, Karr reiterated his claim that Post-Newsweek failed to provide sufficient grounds for proving fraud. Karr cited the testimony of Post-Newsweek official Garland Christmas in a deposition in which Christmas stated he was not familiar with the specific details of the lawsuit’s allegation that Metro Weekly and Shulman engaged in fraud through the licensing agreement between Isosceles and Jansi.

Karr argued in his brief that Christmas, the Post-Newsweek official in charge of debt collection for the company, also could not provide information to support Post-Newsweek’s claim that it suffered damages exceeding $1 million due to the non-payment of the printing debt or the licensing deal between Isosceles and Jansi.

In his opposition motion for Post-Newsweek, Thaler said the latest lawsuit was aimed at “asking the court to pierce the corporate veil and find that defendants Randy Shulman and Jansi LLC are the functional ‘alter egos’ of Isosceles and should therefore be held liable for the debt owed to Plaintiff.”

Business funds for personal use

In his opposition motion, Thaler added, “Mr. Shulman further indicated [in a deposition] that the licensing arrangement was the ‘only way’ Metro Weekly could continue to be published in light of the tax lien against Isosceles…Shulman and his business partners frequently commingled funds between Jansi and Isosceles. Shulman has also withdrawn funds from Isosceles and Jansi for personal use.”

Shulman was asked during depositions about various charges made to a company ATM card. “If you go down the purchases apparently using the ATM card you’ll see not just the Pet Smart and Martin’s Wine but a series of purchases at Safeway, RiteAid, Target and Subway as well as something called 14k Restaurant, Starbucks. Is it your testimony that all of these were for Jansi or mistakes by you as you’ve indicated you sometimes do,” a Post-Newsweek lawyer asked.

“Some could be mistakes I would think that – I know for a fact the 14K would be a business – that would be a business – that was probably for coffee for a business meeting,” Shulman replied.

In response to questions about purchases with the Jansi card made at other places, such as the Virginia Market convenience store near his home, Shulman said:

“ … I’m looking this over and I’m looking at the cluster of time and it’s very likely at this time that, aside from the thing that I was – quite honestly, I probably had absolutely no money in my own personal account. I was actually utilizing Jansi funds that were there at the time to help support me.”

“So you used the ATM for Jansi,” the lawyer replied.

“I did use the ATM for Jansi to make my purchases during that period.”

In his April 22 ruling denying Jansi and Shulman’s summary judgment motion to dismiss the fraud charge, Judge Johnson stated, “The court has already concluded that Plaintiff’s fraud claim was sufficiently pled when it denied Defendants’ Motion for Failure to State a Claim on Sept. 13, 2010.  With regard to the instant motion, the Court does not find that the issue of fraud, at least in this case, lends itself to summary judgment.”

Advertisement
FUND LGBTQ JOURNALISM
SIGN UP FOR E-BLAST

Delaware

Delawareans march in D.C. WorldPride parade

CAMP Rehoboth contingent among marchers

Published

on

(Washington Blade photo by Michael Key)

The nation’s capital welcomed WorldPride this past weekend, a massive celebration that usually takes place in a different city every two years. 

The Saturday parade attracted hundreds of thousands of people from around the world and the country. The state of Delaware, a few hours drive from D.C., saw participants in the parade, with CAMP Rehoboth, an LGBTQ community center in Rehoboth Beach, hosting a bus day trip. 

Hope Vella sits on the board of directors and marched with CAMP Rehoboth. Vella said that although the parade took a long time to start and the temperature was hot, she was “on a cloud” from being there. 

“It didn’t matter to me how long it took to start. With the current changes that are in place regarding diversity and inclusion, I wanted my face there,” Vella said. “My life is an intersection. I am a Black woman. I am a lesbian, and I have a disability. All of these things are trying to be erased … I didn’t care how long it took. I didn’t care how far it was going to be. I was going to finish that parade. I didn’t care how hot it was.”

The nearly two mile parade route didn’t feel as long because everyone was so happy interacting with the crowd, Vella said. The group gave out beads, buttons, and pins to parade watchers. 

“The World Pride celebration gave me hope because so many people came out. And the joy and the love that was between us … That gave me hope,” Vella said. 

Vella said that people with disabilities are often overlooked. More than one in four Americans have disabilities, according to the U.S. Centers for Disease Control and Prevention

Vella said it was important for her “to be out there and to be seen in my wholeness as a Black woman, as a lesbian, as a woman with a disability and to not be hiding. I want our society to understand that we exist in LGBTQ+ spaces also.”

Retired Maj. Gen. Tammy Smith is involved with CAMP Rehoboth and marched with a coalition of LGBTQ military members. Smith said they were walking to give transgender military members visibility and to remind people why they are serving. 

“When we are not visible, what is allowed to take our place is stereotypes,” Smith said. “And so without visibility, people think all veterans are conservative and perhaps not open to full equality. Without visibility, they might think a small state with a farming background may be a place that’s unwelcoming, but when you actually meet the people who are from those places, it sets aside those stereotypes and the real authenticity is allowed to come forward.”

During the parade, Smith said she saw trans military members in the parade make eye contact or fist bump with transgender people in the crowd. 

“They were seen. Both sides were seen during that parade and I just felt privileged to be able to witness that,” Smith said. 

Smith said Delaware is a state that is about freedom and equality and is the first state for a reason. The LGBTQ community is engrained as part of life in the Rehoboth and Lewes areas. 

“What pride means to me is that we must always be doing what is necessary to maintain our dignity as a community,” Smith said. “We can’t let what people with negative messaging might be tossing our way impact us and the celebration of Pride. I don’t see it as being self-promoting. I see it as an act of dignity and strength.”

Continue Reading

District of Columbia

Drag queens protest Trump at the Kennedy Center

President attended ‘Les Misérables’ opening night on Wednesday

Published

on

The Kennedy Center (Washington Blade photo by Michael Key)

On Wednesday night, four local drag performers attended the first night of the Kennedy Center’s season in full drag — while President Donald Trump, an outspoken critic of drag, sat mere feet away. 

Three queens — Tara Hoot, Vagenesis, and Mari Con Carne — joined drag king Ricky Rosé to represent Qommittee, a volunteer network uniting drag artists to support and defend each other amid growing conservative attacks. They all sat down with the Washington Blade to discuss the event.

The drag performers were there to see the opening performance of “Les Misérables” since Trump’s takeover of the historically non-partisan Kennedy Center. The story shows the power of love, compassion, and redemption in the face of social injustice, poverty, and oppression, set in late 19th century France. 

Dressed in full drag, the group walked into the theater together, fully aware they could be punished for doing so.

“It was a little scary walking in because we don’t know what we’re going to walk into, but it was really helpful to be able to walk in with friends,” said drag queen Vagenesis. “The strongest response we received was from the staff who worked there. They were so excited and grateful to see us there. Over and over and over again, we heard ‘Thank you so much for being here,’ ‘Thank you for coming,’ from the Kennedy Center staff.”

The staff weren’t the only ones who seemed happy at the act of defiance. 

“We walked in together so we would have an opportunity to get a response,” said Tara Hoot, who has performed at the Kennedy Center in full drag before. “It was all applause, cheers, and whistles, and remarkably it was half empty. I think that was season ticket holders kind of making their message in a different way.”

Despite the love from the audience and staff, Mari Con Carne said she couldn’t help feeling unsettled when Trump walked in.

“I felt two things — disgust and frustration,” Carne said. “Obviously, I don’t align with anything the man has to say or has to do. And the frustration came because I wanted to do more than just sit there. I wanted to walk up to him and speak my truth  — and speak for the voices that were being hurt by his actions right now.”

They weren’t the only ones who felt this way according to Vagenesis:

“Somebody shouted ‘Fuck Trump’ from the rafters. I’d like to think that our being there encouraged people to want to express themselves.”

The group showing up in drag and expressing themselves was, they all agreed, an act of defiance. 

“Drag has always been a protest, and it always will be a sort of resistance,” Carne said, after pointing out her intersectional identity as “queer, brown, Mexican immigrant” makes her existence that much more powerful as a statement. “My identity, my art, my existence — to be a protest.”

Hoot, who is known for her drag story times, explained that protesting can look different than the traditional holding up signs and marching for some. 

“Sometimes protesting is just us taking up space as drag artists,” Hoot added. “I felt like being true to who you are —  it was an opportunity to live the message.”

And that message, Ricky Rosé pointed out, was ingrained with the institution of the Kennedy Center and art itself — it couldn’t be taken away, regardless of executive orders and drag bans

“The Kennedy Center was founded more than 50 years ago as a place meant to celebrate the arts in its truest, extraordinary form,” said Ricky Rosé. “President Kennedy himself even argued that culture has a great practical value in an age of conflict. He was quoted saying, ‘the encouragement of art is political in the most profound sense, not as a weapon in the struggle, but as an instrument of understanding the futility of struggle’ and I believe that is the basis of what the Kennedy Center was founded on, and should continue. And drag fits perfectly within it.”

All four drag performers told the Washington Blade — independently of one another — that they don’t think Trump truly understood the musical he was watching.

“I don’t think the president understands any kind of plot that’s laid out in front of him,” Vagenesis said. “I’m interested to see what he thinks about “Les Mis,” a play about revolution against an oppressive regime. I get the feeling that he identifies with the the rebellion side of it, instead of the oppressor. I just feel like he doesn’t get it. I feel it goes right over his head.”

“Les Misérables” is running at the Kennedy Center until July 13.

Continue Reading

Local

Comings & Goings

Kefalas, Czapary to open Yala Greek Ice Cream Shop in Georgetown

Published

on

Chrys Kefalas and Salah Czapary

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 Chrys Kefalas and Salah Czapary on their new venture, the Yala Greek Ice Cream Shop, which will open in Georgetown, at 3143 N St. N.W., around July 4.

Kefalas is the CEO and founder, Czapary is the co-founder/director of experience and operations. The third co-founder is Steve Shyn, COO. From what I hear Chrys and Salah will at times both be doing the scooping to the lucky people who stop by their shop. The word “Yala” is a play on the Greek word for “milk,” and fittingly, Yala Greek Ice Cream is made using hand-crafted techniques passed down through three generations of Greek ice cream makers. 

Kefalas told the Blade, “This is not frozen yogurt, just inspired by Greek flavors or a trendy twist on gelato. This is true Greek ice cream, finally making its American debut. It is crafted with farm-fresh milk from Maryland, Greek yogurt and honey, fruit preserves from the Mediterranean, and ingredients sourced directly from Greece, Italy, and the Middle East, including premium pistachios and sustainably harvested vanilla.” 

The two come from different backgrounds. Kefalas has a family in the restaurant business but is currently the head of the brand division at the National Association of Manufacturers. He is a former Justice Department attorney; worked as Attorney General Eric Holder’s speech writer; Gov. Bob Erlich’s counsel in Maryland; and ran for U.S. Senate in Maryland (endorsed by the Baltimore Sun). Born and raised in Baltimore, he’s a Washingtonian of nine years. He told the Blade, “Yala Ice Cream is a tribute, a legacy, and a love letter across generations.” He spent his early years working in his grandfather’s restaurant in Baltimore, Illona’s. Kefalas hopes, “Just like Greek yogurt changed everything, Greek ice cream is going to set the new standard for ice cream. But, for us, it isn’t just about ice cream; it’s about making my Papou, my grandfather, proud.” 

Many people in D.C. know Czapary. He is the son of a Palestinian refugee, and Hungarian immigrant, and a longtime Washington, D.C. resident. Czapary served as a police officer and community engagement leader with the MPD. He then ran for D.C. Council, and although didn’t win, was endorsed by the Washington Post. After that race, D.C. Mayor Muriel Bowser realized how accomplished he is and asked him to join her administration, where he served as director of the Mayor’s Office of Nightlife and Culture. 

Czapary told the Blade, “We’re bringing the first authentic Greek ice cream shop to the U.S., and we’re doing it with heart. We’re building a space where kindness, community, and a scoop of something extraordinary come together. Our Georgetown scoop shop is designed to be a welcoming haven where every guest feels a sense of belonging.”

Continue Reading

Popular