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Metro Weekly publisher settles $1 million lawsuit

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

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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.”

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District of Columbia

HIV Vaccine Awareness Day set for May 18

Whitman-Walker joins nationwide recognition of efforts to develop vaccine

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(Image courtesy of the NIH)

Whitman-Walker Health, the D.C.-based community healthcare center that specializes in HIV/AIDS and LGBTQ-related health services, will join health care advocates from across the country to support efforts to develop an HIV vaccine on HIV Vaccine Awareness Day on May 18.

“HIV Awareness Day, observed annually on May 18, was established to recognize and thank the volunteers, scientists, health professionals, and community members working toward a safe and effective prevention HIV vaccine,” Whitman-Walker said in a statement.

“Led by the National Institutes of Health’s National Institute of Allergy and Infectious Diseases (NIAID), the day is also an opportunity to educate communities about the critical importance of preventive HIV vaccine research,” the statement says.

It adds, “The reality is that any new vaccine discovery must be built community by community, institution by institution, and then it must reach everyone – especially the communities who have carried the heaviest burden of this epidemic.”

On its own website, the National Institutes of Health says HIV Vaccine Awareness Day also highlights its longstanding efforts, coordinated by its Office of AIDS Research, to support researchers’ efforts to develop an HIV vaccine.  

“Researchers are making promising headway in efforts to develop a safe, effective HIV vaccine,” it says in a statement on its website.

A Whitman-Walker spokesperson said Whitman-Walker was not holding a specific event to observe HIV Vaccine Awareness Day, but it will recognize the day as a way of encouragement for its ongoing work to address the AIDS epidemic and support for vaccine research.

“Today, no one has to die from HIV,” said Whitman-Walker’s Health System division’s CEO, Dr. Heather Aaron in the Whitman-Walker statement. “We have the treatments, the technology, and the research to change outcomes, and yet people in our community are still dying from HIV//AIDS,” she said in the statement.

“That is unacceptable, and it is exactly why our work continues,” she added. “Here in D.C. with more focus on Southeast D.C., the Whitman-Walker Health System remains committed to making a difference through cutting-edge research, policy advocacy, and philanthropy, because fair access to life-saving treatment is not a privilege. It is a right.”  

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District of Columbia

Capital Stonewall Democrats endorses Janeese Lewis George for D.C. mayor

Group also backed D.C. Council, Congressional delegate, AG candidates

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Janeese Lewis George (Washington Blade photo by Michael Key)

The Capital Stonewall Democrats, D.C.’s largest local LGBTQ political organization, announced on May 14 that it has endorsed D.C. Councilmember Janeese Lewis George (D-Ward 4) for mayor in the city’s June 16 Democratic primary.

Lewis George along with former D.C. Councilmember Kenyan McDuffie (D-At-Large) are considered by political observers to be the two leading candidates among the seven candidates competing in the Democratic primary election for mayor.

Both have strong, long-standing records of support on LGBTQ issues, indicating Capital Stonewall Democrats members, like LGBTQ voters across the city, are likely choosing a candidate based on non-LGBTQ related issues.

In a May 14 statement, the group announced its endorsements in seven other Democratic primary races, including D.C. Council Chair Phil Mendelson, who is running unopposed in the primary. Also endorsed is D.C. Councilmember Robert White (D-At-Large), who is one of five Democratic candidates competing for the position of D.C. delegate to the U.S. House of Representatives.

D.C. Councilmember Brooke Pinto (D-Ward 2) is among the four candidates competing with White for that post, and who like White has a strong record of support on LGBTQ issues.

In the At-Large D.C. Council race for which incumbent Anita Bonds is not running for re-election, Capital Stonewall Democrats has endorsed community activist and LGBTQ ally Oye Owolewa in a nine candidate race.    

For the Ward 1 D.C. Council election, in which five LGBTQ supportive candidates are competing, the group did not make an endorsement because none of the candidate received a required 60 percent of the endorsement vote cast by Capital Stonewall Democrats members, according to the group’s former president, Howard Garrett.   

The statement announcing its endorsements shows that it decided to list its “Preferred Ranking” of each of the Ward 1 Democratic candidates as part of the city’s newly implemented ranked choice voting system. It lists gay candidate Miguel Trindade Deramo as first, bisexual candidate Aparna Raj second, Jackie Reyes Yanes third, Rashida Brown fourth, and Terry Lynch fifth.

In the remaining ward Council races, Capital Stonewall Democrats endorsed Councilmember Matt Fruman (D-Ward 3), who is running unopposed for re-election; Councilmember Zachary Parker (D-Ward 5), the Council’s only gay member who is being challenged by two opponents; and Councilmember Charles Allen (D-Ward 6), who is running unopposed for re-election.

The group also chose not to make an endorsement in the special election for another At-Large D.C. Council seat that became vacant when then-Independent Councilmember McDuffie resigned to enable him to run for mayor as a Democrat. Under the city’s Home Rule Charter adopted by Congress, that at large sweat is restricted to a “non-majority party” candidate, meaning a non-Democrat.

The three candidates running for the seat, all Independents, include incumbent Doni Crawford, who was appointed to the seat earlier this year; former D.C. Councilmember Elissa Silverman; and Jacque Patterson. All three have expressed support on LGBTQ related issues.

“The organization’s endorsement process included candidate questionnaires, public forums, and direct voting by active CSD members,” the statement announcing its endorsements says. “Each endorsement reflects the collective voice of 173 LGBTQ+ Democrats who voted in the process and are committed to building lasting political power in the District,” according to the statement. “Candidates that reached 60 percent support received the endorsement.”

Garrett, the group’s former president, acknowledged that with nearly all candidates running in D.C. elections expressing strong support for the LGBTQ community, many if not most of the group’s members most likely chose a candidate based on issues other than LGBTQ related issues.

He said he believes Lewis George, who he is supporting and is viewed as a progressive candidate who self-identifies as a Democratic Socialist, compared to McDuffie, who is viewed as a moderate Democrat, captured the group’s endorsement based on the view that she is the best person to lead the city going forward.

“I believe that Capital Stonewall members voted for Janeese Lewis George because we’re tired of the status quo and we need a new, bold leader to not only move our city forward but also to stand up to Donald Trump and his administration,” Garrett told the Washington Blade.

McDuffie’s LGBTQ supporters, including former Capital Stonewall Democrats presidents David Meadows and Kurt Vorndran, have argued that McDuffie’s positions on a wide range of issues, including LGBTQ issues, show him to be the best candidates to lead the city at this time and In future years.

The group’s endorsement of Lewis George comes one week after GLAA DC, a nonpartisan LGBTQ advocacy group, awarded her its highest candidate rating of +10.    

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Rehoboth Beach

What’s new in Rehoboth Beach for summer 2026

Moon changes ownership, Market 59 debuts, and much more

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The beach beckons in Rehoboth. (Blade file photo by Daniel Truitt)

Another year and Rehoboth Beach, Del., is ready for the new summer season. The crowds will come for sun, sand, surf, and the boardwalk. It will cost a little more to get to the beach this year, as gas prices are way up. But once you are in Rehoboth, you know it’s worth it. 

One aesthetic change you’ll notice at the boardwalk is the installation of a security gate and bollards near the bandstand, intended to enhance security during large events. The town plans an expanded fireworks show for July 4 to honor the nation’s 250th birthday. 

Most of the commercial establishments in Rehoboth are along and between three blocks: Baltimore Avenue, Rehoboth Avenue, and Wilmington Avenue. This column will seem like I am walking back and forth because I am, and you will too. One thing to remember: Parking in Rehoboth is difficult and expensive and free parking is over as of May 15. There are parking permits available for either a day or longer at the non-metered spots.

During more than 40 years that I have been going to Rehoboth, including more than 30 owning a place in Sussex County, I have witnessed the town transform from a summer vacation spot to a vibrant, year-round community. This was hastened by the COVID pandemic, when lots of people moved to the beach when they could work virtually. Others, reaching retirement age, decided the beach was the place to be. This influx of residents has given many businesses a reason to stay open year round.

Over the years, Rehoboth has become a real foodie town, with many more restaurants, many of them high-end, opening. There are local gay-led restaurant groups like the award-winning Second Block Hospitality Group, which operates The Pines, Bodhi Kitchen, and Drift. Another group, JAM Holdings, owns Eden, which relocated to Route 1 in January after 20 years on Baltimore Avenue; and Jam, which is expected to reopen on Rehoboth Avenue later this year after leaving its Wilmington Avenue location that was demolished over the winter. That building was home to several beloved restaurants over the decades, including Chez la Mer and Azzurro. 

Among the new businesses this year, be sure to stop at the gay-owned Bay Laurel Home and Garden, located at the old Farmer Girl site on Route 1 for your gardening needs. The Waypoint Hotel opened in December on Rehoboth Avenue, site of the former gay-owned Shore Inn.

Another of the newbies is the upscale Market 59 on Baltimore Avenue. The owners plan to add a restaurant and bar before July 4 called Fifty-Nine. The market offers grab-and-go options for the beach plus homemade breads and pastries, produce, and seafood. Then there is the renamed Frankie and Louie’s across the street, now called Pazzo Italiano. Still the same great takeout and now hooked up with The Pines leading to some new menu items. Then I hear there will also be a new Champagne Bar opening soon on Baltimore Avenue. 

Then there are the established and stellar standbys, including the Back Porch, on Rehoboth Avenue; Megan Kee’s restaurants La Fable, Houston White, and Dalmata; and the restaurants on Wilmington Avenue, including Mariachi, Salt Air, and Henlopen Oyster House, where you can sample the Rehoboth Rose oysters from the gay-owned Nancy James Oysters. Then on 1st Street there is Goolee’s Grill for a comforting breakfast and Bloody. Walk up the second block of Rehoboth Avenue and you reach the Purple Parrot and its ever-popular Biergarten.

The iconic Blue Moon restaurant and bar was recently sold to new owners who have pledged to keep it an LGBTQ-affirming space, according to longtime owner Tim Ragan. Ragan and his partner Randy Haney sold the Blue Moon to Dale Lomas and Mike Subrick, owners of Atlantic Liquors on Route 1. “They don’t want to change a thing,” Ragan told the Blade. Happy hour continues all summer long from 4-6 p.m.

For morning coffee nothing beats The Coffee Mill, in the mews between Rehoboth and Baltimore Avenue, where I can be found every morning I am at the beach. The owners, Mel and Bob, also own the Mill Creamery ice cream shop, and another Coffee Mill in Dewey Beach. Mel is proud of his clothing store BRASHhh on 1st Street. On the Rehoboth Avenue side of the mews is the beloved Browseabout Books where you can find a beach read, grab a coffee, and shop for everything from toys to home decor. A few doors away on Rehoboth Avenue is the fun Gidgets Gadgets.

My favorite place for happy hour is Aqua Bar & Grill for good drinks, food, and service. Say hi to Katie Lyell behind the bar at Aqua, winner of the Blade’s Best Of Award for Best Rehoboth Bartender. Aqua, which is celebrating its 20th anniversary this year, hosts Taco Tuesdays and half-price burgers on Thursdays, all on the spacious outdoor deck. While you are on Baltimore Avenue make sure to stop by CAMP Rehoboth, the LGBTQ community center. Pick up your copy of Letters and take a peek at the art exhibit in their offices. Maybe even say hello to the new executive director, Robin Brennan, Ph.D. I had the chance to stop in and meet her and my congratulations to the board. I think they made a great choice for executive director and the organization is clearly in good hands. Then stop in the CAMP Courtyard, and get something to eat at Loris Oy Vey café, celebrating her 30th season, and still the best chicken salad at the beach. Visit the newly relocated Gallery 50 on Baltimore Avenue, which moved from Wilmington Avenue. Then stop in at Elegant Slumming, also on Baltimore Avenue, say hi to Philip, and shop his exquisite jewelry, and some great artwork. If you have a pet and want to treat them to something nice, stop by Critter Beach on Rehoboth Avenue.

After a day in the sand, and a good dinner, there is the nightlife. Diego’s on Rehoboth Avenue Extended hosts regular entertainment, including drag shows and internationally renowned DJs. A new partially enclosed patio offers an expanded space to hang out. Don’t miss their Sundays with local icon Pamala Stanley, now in her 21st season at the beach; in addition to her Sunday dance party, she performs her “Piano Pam” show on Monday evenings. Then there is always fun at Freddies Beach Bar, on 1st Street with its video bar and regular entertainment. Clear Space Theatre on the first block of Baltimore Avenue has a busy summer of shows including “The Cher Show”(June 23-Aug. 27), “Mean Girls” (June 26-Aug. 29), and “Pretty Woman” (July 1-Aug. 25). Clear Space always hosts talented casts including many college students who are getting their first chance to shine. Some come back when they are a little more established. This year that includes Caetano de Sá who first performed at the beach in “Jersey Boys” when he was a student at the Boston Conservatory at Berklee, where he earned his BFA in musical theater. He will be back as of May 25 for the summer rep to play Sonny in the production of “The Cher Show,” Martin/Coach Carr in “Mean Girls,” and Mr. Hollister in “Pretty Woman,” along with some cabarets. The incredibly talented Ashley Williams is also back in town and will host a cabaret show on Aug. 2. Tickets for all the shows are available online and they sell out fast. 

So, make your plans now to head to the beach. Stay a day, or a week, or more, in a hotel, or a rental house. But make those plans quickly, as things sell out fast in Rehoboth. Look forward to seeing you at the beach!

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