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.”
District of Columbia
Sold-out crowd turns out for 10th annual Caps Pride night
Gay Men’s Chorus soloist sings National Anthem, draws cheers
A sold-out crowd of 18,347 turned out on Jan. 17 for the 10th annual Pride Night at the Washington Capitals hockey game held at D.C.’s Capital One Arena.
Although LGBTQ Capitals fans were disappointed that the Capitals lost the game to the visiting Florida Panthers, they were treated to a night of celebration with Pride-related videos showing supportive Capitals players and fans projected on the arena’s giant video screen throughout the game.
The game began when Dana Nearing, a member of the Gay Men’s Chorus of Washington, sang the National Anthem, drawing applause from all attendees.
The event also served as a fundraiser for the LGBTQ groups Wanda Alston Foundation, which provides housing services to homeless LGBTQ youth, and You Can Play, a nonprofit organization dedicated to advancing LGBTQ inclusion in sports.
“Amid the queer community’s growing love affair with hockey, I’m incredibly honored and proud to see our hometown Capitals continue to celebrate queer joy in such a visible and meaningful way,” said Alston Foundation Executive Director Cesar Toledo.
Capitals spokesperson Nick Grossman said a fundraising raffle held during the game raised $14,760 for You Can Play. He said a fundraising auction for the Alston Foundation organized by the Capitals and its related Monumental Sports and Entertainment Foundation would continue until Thursday, Jan. 22
A statement on the Capitals website says among the items being sold in the auction were autographed Capitals player hockey sticks with rainbow-colored Pride tape wrapped around them, which Capitals players used in their pre-game practice on the ice.
Although several hundred people turned out for a pre-game Pride “block party” at the District E restaurant and bar located next to the Capital One Arena, it couldn’t immediately be determined how many Pride night special tickets for the game were sold.
“While we don’t disclose specific figures related to special ticket offers, we were proud to host our 10th Pride night and celebrate the LGBTQ+ community,” Capitals spokesperson Grossman told the Washington Blade.
Virginia
Two gay candidates running in ‘firehouse’ Va. House of Delegates primary in Alexandria
Kirk McPike, Gregory Darrall hope to succeed delegate vying for Ebbin’s seat
Gay Alexandria City Council member Kirk McPike and gay public school teacher Gregory Darrall, who serves as vice president of the Fairfax County Federation of Teachers, are among four candidates running in a Jan. 20 “firehouse” Democratic primary for a seat in the Virginia House of Delegates.
With less than a week’s notice, Democratic Party officials in Alexandria called the primary to select a Democratic nominee to run in a Feb. 10 special election to fill the 5th House District seat being vacated by state Del. Elizabeth Bennett-Parker (D-Alexandria).
Bennett-Parker won the Democratic nomination for the Virginia Senate seat being vacated by gay state Sen. Adam Ebbin (D-Alexandria), who is resigning from the seat to take a position in the administration of Democratic Virginia Gov. Abigail Spanberger, who took office on Jan. 17.
Bennett-Parker won the nomination for the state Senate seat in yet another firehouse primary on Jan. 13 in which she defeated three other candidates, including gay former state Del. Mark Levine.
The Jan. 20 primary in which McPike and Darrall are competing will take place from 8:30 a.m. to 7 p.m. in two polling places in Alexandria: the Charles E. Beatley Jr. Central Library at 5005 Duke St. and the Charles Houston Recreation Center at 901 Wythe St.
The other two candidates running are former Alexandria City School Board member Eileen Cassidy Rivera and criminal law defense attorney Chris Leibig.
McPike, who first won election to the Alexandria City Council in 2021, served for 13 years as chief of staff for gay U.S. Rep. Mark Takano (D-Calif.) prior to winning election to the Alexandria City Council.
“Now, Kirk is ready to bring his experience to Richmond to keep improving the lives of all Virginians as our delegate for House District 5,” his campaign website says. His website writeup says he and his husband, Cantor Jason Kaufman, have lived in Alexandria’s Seminary Hill neighborhood for 15 years.
“As delegate, we can count on Kirk to keep delivering for us — helping Virginia maintain our commitments to our schools, our first responders, and our efforts to address climate change, housing affordability, and infrastructure,” the website statement says.
McPike, a longtime LGBTQ rights supporter and advocate, has been endorsed by Ebbin and U.S. Rep. Don Beyer (D-Va.). Beyer said in a statement that McPike “has a proven track record of delivering results for Alexandrians.” The LGBTQ+ Victory Fund, which raises money for LGBTQ candidates running for public office, has also endorsed McPike.
Darrall’s campaign website says he is a “proud progressive, lifelong educator, and labor leader running to put people first.” It says he is a political newcomer “with more than 20 years in the classroom” as a teacher who played a key role in the successful unionization of Fairfax Public Schools.
“He is a proud member and staunch supporter of the LGBTQIA+ community,” his website statement says. It says he met his husband Jose while living in Miami and the two operated a small business in South Florida for a decade before moving to Alexandria in 2015. It adds that Darrall is “fluent in Spanish, loves walking Alexandria’s neighborhoods, and is driven by a deep belief in fairness, equality, and strengthening our democracy from the ground up.”
The Alexandria Republican City Committee nominated local business executive Mason Butler as the Republican nominee for the House of Delegates seat in the Feb. 10 special election after he emerged as the only GOP candidate running for the seat, according to the Alexandria Brief publication. He will face the Democratic winner in the Jan. 20 firehouse primary.
The Washington Blade is seeking to determine GOP candidate Butler’s and Democratic candidates Leibig’s and Rivera’s positions on LGBTQ-related issues and will update this story if their positions on those issues can be determined.
Abigail Spanberger was sworn in as the 75th governor of Virginia at a ceremony on the grounds of the Virginia State Capitol on Saturday. Thousands of spectators watched the swearing-in ceremony and parade, despite the rain and temperatures in the low 40s.
Spanberger, a member of the Democratic Party and an LGBTQ ally, became the first woman to be Virginia’s governor.
View on Threads
Newly-elected Attorney General Jay Jones, Lt. Gov. Ghazala Hashmi, and Spanberger were each administered the oath of office in the public ceremony.
Republican former Gov. Glenn Youngkin left the ceremony shortly after the oath of office was administered to Spanberger and before the inaugural address.
In her speech, the new governor made an appeal to bipartisanship and looking past division in our current moment.
“To my friends in the General Assembly — on both sides of the aisle — I look forward to working with you,” said Spanberger. “I know what it means to represent your constituents, to work hard for your district, and to pursue policies you believe in. We will not agree on everything, but I speak from personal experience when I say that we do not have to see eye-to-eye on every issue in order to stand shoulder-to-shoulder on others.”
Spanberger acknowledged Virginians’ frustrations with federal layoffs and governmental policy.
“I know many of you are worried about the recklessness coming out of Washington. You are worried about policies that are hurting our communities — cutting healthcare access, imperiling rural hospitals, and driving up costs,” said Spanberger. “You are worried about Washington policies that are closing off markets, hurting innovation and private industry, and attacking those who have devoted their lives to public service.”
Spanberger alluded to the Trump administration, though never mentioned President Donald Trump’s name in her remarks.
Spanberger said, “you are worried about an administration that is gilding buildings while schools crumble, breaking the social safety net, and sowing fear across our communities, betraying the values of who we are as Americans, the very values we celebrate here on these steps.”
The new governor then spoke of her priorities in office, pledging to tackle housing affordability by working to “cut red tape” and increase housing supply. Spanberger also spoke of forestalling an impending healthcare crisis by protecting access and cracking down on “middlemen who are driving up drug prices.”
Spanberger spoke of investments in education at every level, standing up for workers (including the large number of federal workers in Virginia), and taking action on gun violence.
Virginia married couple Mary Townley and Carol Schall witnessed the inauguration ceremony from the stands set up on the grounds of the Capitol. Schall and Townley are one of the plaintiff couples in the case that challenged the Virginia constitutional ban on same-sex marriage.
Same-sex marriage became legal in Virginia in 2014.
“We are delighted with the inauguration of Abigail Spanberger as governor of Virginia,” Schall told the Washington Blade. “The celebration of her inauguration was full of the beautiful diversity that is Virginia. The Virginia Pride contingent was included as a part of what makes Virginia a great place to live.”
“Such an honor to attend such a wonderful event in Virginia history,” Townley told the Blade. “The weather before the Inauguration was cold and rainy, but I believe it represented the end of a dreary time and it ushered in the dry and sunny weather by the end of the inaugural parade. Madam Governor brought us to the light!”
The inaugural parade following the governor’s remarks included a contingent from Diversity Richmond and Virginia Pride. Marchers in the LGBTQ contingent carried a giant Progress Pride flag and were met with loud cheers from the gathered spectators.
Spanberger after her inauguration signed 10 executive orders. One of them bans discrimination against state employees based on sexual orientation, gender identity, and other factors.
“By virtue of the authority vested in me as Governor under Article V of the Constitution of
Virginia, I hereby declare that it is the firm and unwavering policy of the Commonwealth of Virginia to ensure equal opportunity in all facets of state government,” reads the executive order. “The foundational tenet of this executive order is premised upon a steadfast commitment to foster a culture of inclusion, diversity, and mutual respect for all Virginians.”
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Comings & Goings
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