Local
Metro Weekly publisher settles $1 million lawsuit
Agreement reached over debt, fraud allegation; IRS tax liens remain
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.”
Virginia
Prominent activists join ‘Living History’ panel at Freddie’s Beach Bar
Event organized by owner of new Friends of Dorothy Café in Alexandria
Six prominent LGBTQ community leaders and elders, including a beloved drag performer, talked about their role in advancing the rights of LGBTQ people and their thoughts on how the upcoming generation of LGBTQ youth should get ready to join the movement participated in an April 23 “Living History” panel discussion at Freddie’s Beach Bar.
The event was organized by Dorothy Edwards, who plans to open Friends of Dorothy Café in Alexandria. She said the café will be an LGBTQ community “intergenerational space” that will host events like the one she organized at Freddie’s Beach Bar.
“It will be a space for connection, storytelling, and belonging, especially for LGBTQ+ youth and community members who don’t always have places like that,” she said in a statement announcing the event at Freddie’s.
The six panelists at the Freddie’s event included Kierra Johnson, president of the D.C.-based National LGBTQ Task Force; Freddie Lutz, owner of Freddie’s Beach Bar located in the Crystal City section of Arlington, Va.; Donnell Robinson, who for many years performed in drag as the icon Ella Fitzgerald; Taylor Chandler Walker, a local transgender rights advocate, author and public speaker; Heidi Ellis, coordinator of the D.C. LGBTQ Budget Coalition; and Leti Gomez, an LGBTQ Latino community advocate and chair of the board of the American LGBTQ+ Museum.
Dr. Ashley Elliott, an LGBTQ community advocate and clinician who also goes by the name Dr. Vivid, served as moderator of the panel discussion, asking each of the panelists a serious of questions before opening the event to questions from the audience.
Among the issues discussed by the panelists was who was “centered” and who was excluded in the earlier years of LGBTQ organizing. Elliot also asked the panelists to address topics such as racism within queer spaces, gender dynamics, and strategies for coalition building between the LGBTQ community and other movements, including civil rights, feminism, and immigrant rights.
Each of the panelists expressed various thoughts on how the LGBTQ rights movement can make changes in response to the questions: “What can we do better?” and “Who is being left out?”
“I’m overwhelmed and so thankful that everyone on this panel said yes and agreed to come,” Edwards told the Washington Blade at the conclusion of the event. “I think every one of those people, including the moderator, was so brilliant and has done such good work for this community,” she said.
Edwards noted that each of the panelists, who have been involved in LGBTQ advocacy work for many years, talked about how they interact with younger LGBTQ people who are just beginning to become involved in activism.
“Truly, it’s an intergenerational conversation, and their wisdom and their words and their experiences can be disseminated to younger generations and people who want to do this work, people who want to fight for our community,” Edwards said.
“I was pleasantly surprised,” Lutz said. “I thought it was a good turnout, and everybody was very enthusiastic and engaged,” he said. “And I think it was great and fabulous.”
Lutz has operated Freddie’s Beach Bar for more than 25 years and has hosted numerous LGBTQ events. A sign above the front entrance door to the popular LGBTQ bar and restaurant says, “Straight Friendly Gay Bar.”
Edwards said the April 23 event was recorded and she will make arrangements for the recording to be released for others to view it. The Blade will post the link in this story when it becomes available.
District of Columbia
Second trans member announces plans to resign from Capital Pride board
Zion Peters cites ‘lack of interest in the Black trans community’
Zion Peters, a member of the Capital Pride Alliance Board of Directors who identifies as transgender, told the Washington Blade he plans to resign from the board “due to the lack of interest in the trans community, specifically the Black trans community.”
Peters continued, “Nobody has checked on me in the last two months so that shows their level of unprofessionalism towards their board members and the community as a whole.”
If he resigns, Peters would be the second known trans person to resign from the Capital Pride board since February, when longtime trans activist Taylor Lianne Chandler informed the board of her resignation in a detailed letter that was sent to the Blade by an anonymous source.
Chandler, who served as chair of the Capital Pride Transgender, Gender Non-Conforming, and Intersex Committee, stated in her Feb. 24 letter that she resigned from the board out of frustration that the board had failed to address instances of “sexual misconduct” within the Capital Pride organization. The organization’s and the board’s transgender-related policies were not cited in her letter as a reason for her resignation.
The Blade learned of Peters’s plans to resign from an anonymous source who thought Peters had already resigned along with four other board members identified by the anonymous source. The others, who Capital Pride confirmed this week had resigned, include Anthony Musa, Bob Gilchrist, Kaniya Walker, and Dai Nguyen.
Musa and Gilchrist told the Blade they resigned for personal reasons related to their jobs and that they fully support Capital Pride’s work as an organization that coordinates the city’s annual LGBTQ Pride events.
The Blade has been unable to reach Walker and Nguyen to determine their reasons for resigning.
Capital Pride CEO Ryan Bos and Board Chair Anna Jinkerson didn’t respond to a Blade question asking if they knew why Walker or Nguyen resigned.
In response to a request by the Blade for comment on the resignations and the concern raised by Zion Peters about trans-related issues, Bos and Jinkerson sent separate statements elaborating on the organization and the board’s position on various issues.
“We can confirm that the individuals you referenced, except for Zion, no longer serve on the Capital Pride Alliance Board of Directors,” Jinkerson said in her statement.
She added that following the WorldPride festival hosted by D.C. last May and June that was organized by Capital Pride Alliance, the group anticipated a “significant level of board transition,” with many board members reaching the end of their terms. But she said many board members chose to extend their service or apply for an additional term, showing a “powerful reflection of commitment.”
Without commenting on the specific reasons for the resignations of Peterson, Walker, and Nygun, Jinkerson noted, “As with all volunteer leadership roles, transitions occur for a range of personal and professional reasons, and we appreciate those transitions with both understanding and gratitude.”
In his own statement, Bos addressed Capital Pride’s record on transgender issues.
“The Capital Pride Alliance is committed to supporting and uplifting the Trans community through our work with the Trans Coalition under the Diversity of Prides Initiative, our partnership with Earline Budd on the LGBTQ+ Burial Fund with a focus on our Trans siblings, our collaboration with the National Trans Visibility March, and our ongoing investment in programming for Transgender Day of Visibility and Transgender Day of Remembrance,” Bos said in his statement.
“We also recognize there is always continued work to be done, and we always welcome feedback from our community to ensure our commitment remains unwavering,” he said.
At the time of her resignation in February, Chandler said she could not provide specific details of the instances of sexual misconduct to which she referred in her resignation letter, or who allegedly engaged in sexual misconduct, saying she and all other board members had signed a Non-Disclosure Agreement preventing them from disclosing further details.
Board Chair Jinkerson in a statement released at that time said she and the board were aware of Chandler’s concerns but did not specifically address allegations of sexual misconduct.
“When concerns are brought to CPA, we act quickly and appropriately to address them,” she said. “As we continue to grow as an organization, we’re proactively strengthening the policies and procedures that shape our systems, our infrastructure, and the support we provide to our team and partners,” she said.
Rehoboth Beach
Rehoboth Summer Kickoff Party set for May 15 with Ashley Biden
The Washington Blade’s 19th annual Summer Kickoff Party is scheduled for Friday, May 15 in Rehoboth Beach, Del.
Ashley Biden, daughter of President Joe Biden, has joined the list of speakers, the Blade announced. She will accept an award on behalf of her brother Beau Biden for his LGBTQ advocacy work as Delaware attorney general. (Her appearance was rescheduled from last year.)
The event, to be held this year at Diego’s (37298 Rehoboth Ave. Ext.) from 5-7 p.m., is a fundraiser for the Blade Foundation’s Steve Elkins Memorial Fellowship in Journalism, which funds a summer position reporting on LGBTQ news in Delaware. This year’s recipient will be introduced at the event.
The event will also feature remarks from state Rep. Claire Snyder-Hall. New CAMP Rehoboth Executive Director Dr. Robin Brennan and Blade editor Kevin Naff will also speak. The event is generously sponsored by Realtor Justin Noble, The Avenue Inn & Spa, and Diego’s.
A suggested donation of $25 is partially tax deductible and includes a drink ticket and light appetizers. Tickets are available in advance at bladefoundation.org/rehoboth or at the door.
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