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Posts Tagged ‘Paul Kadlick’

From the April 2015 edition of the Glover Park Gazette:

A breach-of-contract lawsuit against the owners of the defunct JP’s Lounge (2412 Wisconsin Ave.) was dismissed on March 11 because the plaintiff couldn’t locate the defendants, court records show. The plaintiff, Michael Papanicolas, is himself a former owner of the strip club.

Last July, Papanicolas filed suit against the company he sold the club to—Wisconsin Ventures, LLC—as well as its representative, Paul Kadlick. His complaint alleged that the defendants still owed him $375,000 from the 2012 sale of the club. (Two months after the August, 2012 sale, ownership of the club was transferred to a company called The Vice Group, also represented by Kadlick.)

The court granted Papanicolas two extensions of the deadline to prove that he had served the defendants with summonses, but he was not able to do so. The case was dismissed without prejudice, meaning that Papanicolas can re-file the suit if he discovers a way to serve papers on the defendants.

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From the February 2015 edition of the Glover Park Gazette:

On January 5, a judge ordered that the liquor license for JP’s Lounge (2412 Wisconsin Ave.) be turned over to the federal government as part of a plea deal in a cocaine trafficking case. The defendant, Lawrence Carl Nelson, pled guilty of conspiracy to distribute cocaine and of being a felon in possession of a firearm. Nelson, a co-owner of the license, is believed to have bankrolled the club’s 2012 purchase by a partnership known as The Vice Group. Also seized by the feds was a $1 million promissory note from The Vice Group to Nelson, according to the judge’s order.

The strip club was evicted from its building last July for nonpayment of rent, and the building has been vacant since then. The landlords found the original liquor license on the premises and turned it over to the Alcoholic Beverage Regulation Administration for safekeeping.

Meanwhile, the club’s former owner, Michael Papanicolas, is suing The Vice Group and its spokesman, Paul Kadlick, for breach of contract. Papanicolas claims he is owed at least $375,000 from the 2012 sale. There was a hearing on the case held January 9, but no defendants showed up. Another hearing has been scheduled for March 27.

As for the building, the owners of The Mason Inn (2408 Wisconsin Ave.) are in talks to move to the larger JP’s space. Although neither the landlords nor the Mason Inn owners are talking publicly about the negotiations, the Georgetown Current has reported that the Mason Inn owners are interested in purchasing the building.

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From the November 2014 edition of the Glover Park Gazette:

Last month, we told you that the former owner of JP’s Lounge (2412 Wisconsin Ave.) was suing the man he sold the strip club to. Michael Papanicolas claims that Paul Kadlick still owes him $375,000 on the sale. (Wisconsin Ventures LLC, a corporation with which Kadlick is affiliated, is a co-defendant in Papanicolas’s suit.) On October 17, Papanicolas appeared in court to say he hadn’t yet been able to find Kadlick to serve him papers in the lawsuit.

Too bad Papanicolas wasn’t at the courthouse the day before: Kadlick was there in person for sentencing in an assault case. That case sprang from an incident in March of 2013 when Kadlick and two of his business associates—including Phil Mathew, the managing partner of JP’s—broke into a rental house in Southeast and punched its resident in an attempt to get him to move out. According to court documents, they called the victim a “squatter,” though he told police he paid rent. (Ironically, JP’s was evicted from its building in July of this year for nonpayment of rent.)

Kadlick pled guilty to the assault and, on October 16, received a 45-day suspended sentence and was ordered to complete six months of probation. Mathew also pled guilty, but at press time had not been sentenced.

That’s the misdemeanor portion of this month’s JP’s news. In the felony portion: it turns out that one of the club’s financial backers, Lawrence Carl Nelson, was indicted in Maryland last year for conspiracy to distribute 5 kilograms of cocaine and for possessing two firearms as a former felon. The federal government identified the JP’s liquor license as one of Nelson’s assets. His indictment stated that, if he were convicted, the government would seize the license. In a restraining order, it forbade Kadlick, Mathew, and their associates from disposing of it.

On May 9 of this year, Nelson pled guilty to both of the charges against him. His sentencing hearing is set for Monday, January 5. Several parties, including Kadlick, Papanicolas, and the Alafoginis family—the stiffed landlords of 2412 Wisconsin Avenue—may try to lay claim to the license.

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From the October 2014 edition of the Glover Park Gazette:

JP’s Lounge (2412 Wisconsin Ave.) may have closed, but its drama lives on. In July, the strip club’s former owner, Michael Papanicolas, sued the company he sold it to, Wisconsin Ventures LLC, for breach of contract. (Two months after the August, 2012 sale, Wisconsin Ventures turned the club over to The Vice Group, a different company with some of the same owners.)

Papanicolas’s complaint alleges that Wisconsin Ventures still owes him $375,000 from the deal. Paul Kadlick, a principal of Wisconsin Ventures and spokesman for The Vice Group, is named as a co-defendant in the suit. According to the complaint, the total purchase price for the club was $600,000, and Papanicolas received a hefty down payment, as well as scheduled monthly payments of $1,500 through last September. “Since October 1, 2013, and through the present, Plaintiff has not received any payments whatsoever,” the complaint states. Neither Kadlick nor Wisconsin Ventures has formally responded to the suit, according to court documents. JP’s has been closed since July, when its operators were evicted for nonpayment of rent.

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On Friday, June 6, the Office of Tax and Revenue seized the liquor license of JP’s Lounge (2412 Wisconsin Ave.) and ordered it shut down for nonpayment of $654,077.87 in sales tax, penalties, and interest, according to OTR spokeswoman Natalie Wilson.

This morning, to hear the owners’ representative tell it, the strip club got its license back—along with a heartfelt apology from the city tax agency. “The owners owed zero. These guys have been paying taxes fine,” says Paul Kadlick, a representative for the Vice Group, which owns the club. “The revenue agent couldn’t have been more apologetic.”

Curiously, OTR’s Wilson tells a different story. As of late afternoon today, she says, the matter has not been resolved. “OTR has not released the licenses nor granted a reinstatement of any kind,” she wrote in an email after we told her about our conversation with Kadlick. “OTR is working with the new owners to bring them into compliance.”

So what gives? According to Wilson, an OTR review of the club’s account revealed that the club hadn’t paid expected sales taxes for the past six years. That’s what generated the massive tax lien. What the agency’s records apparently failed to reflect was that the club was shut down between January 2008, when a fire destroyed its original building, and June 2013, when the club reopened under new ownership. Wilson told us that OTR was unaware that the club’s ownership had changed. We wonder whether documentation of this change is what’s missing now before the club can reopen.

Kadlick told us he expected the club to be open tomorrow night.

While we had Kadlick on the phone, we asked about the long-shattered glass in the club’s mirrored doorway: Do the owners intend to fix it? Kadlick explained that someone–a Georgetown University student–has been arrested and charged with the crime of breaking the door, and that the club’s owners are awaiting the outcome of that case before repairs are made. “Someone has to make restitution” for the damage, Kadlick says. He estimated the repair cost at “several thousand dollars.”

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JP’s Night Club (2412 Wisconsin Ave.) is scheduled to open for business on Friday, June 21, more than five years after the strip club’s original home was destroyed in a fire, says authorized spokesperson Paul Kadlick. But the club will feature dancers only on its two customary stages, not on its three new tabletop platforms or in its two new semi-private booths. The Alcoholic Beverage Control Board ruled today that the club’s management needs to file a separate application for permission to use the smaller performance spaces—something Kadlick vows to do by Friday at the latest. Kadlick says there’s still a bit of minor paperwork to do at the D.C. Department of Health before the club can open, but he anticipates taking care of that tomorrow.

Kadlick calls today’s ruling a “substantial victory” for the club, which has faced repeated attempts by Advisory Neighborhood Commission 3B to block its reopening. But the ANC can claim a victory in today’s ruling, too. ANC members have raised concerns that the tabletop and booth platforms could encourage illegal physical contact between dancers and club clientele. Earlier, the ABC Board twice rebuffed the ANC’s pleas that the Board study the propriety of the smaller performance spaces before allowing their use. But now the Board has decided to do just that.

Placards to be posted soon at the club will list a deadline for community members to file formal objections to the tabletop spaces or to the liquor license’s reactivation. The ABC Board will consider any valid protests at a hearing later in the summer.

UPDATE: Mark Segraves of NBC4 tweets that the final paperwork has been accomplished and that the club will open at 5 pm on Friday.

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At the September 13 meeting of ANC 3B, commissioners unanimously resolved to request a formal Alcoholic Beverage Control Board hearing into the ownership of JP’s Night Club. The strip club, which has been closed since a January 2008 fire at its 2412 Wisconsin Ave. home, is in the process of reopening under new management, but the identity of the reopeners keeps changing.

“ANC3B is seeking a more open process at this point due to a series of actions, representations, and misrepresentations that have occurred in recent months pertaining to the ownership of JP’s,” the resolution states. Referring to the Alcoholic Beverage Control Board’s rapid approval of one new owner—Brian Petruska—last year and a series of  putative new owners who have presented themselves since then, the resolution states that “the actions of ABRA initially and the contual restructuring of owners and partners” in the club’s holding company, Wisconsin Ventures LLC, “do not give us confidence that when JP’s reopens it will be managed well enough to protect the community from the secondary impacts associated with nude dancing establishments.”  ABRA has already promised to hold a protest hearing before the JP’s license is reactivated. The hearing requested by the ANC would occur prior to that.

An August 13 application to transfer the JP’s license to two new owners of Wisconsin Ventures—Jason Daniel and Philip Mathew—is “still pending the submission of additional documentation,” says ABRA spokesman Bill Hager. The ANC’s request for an ownership hearing “will go before the ABC Board for their review and consideration,” Hager added.

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