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Armenian Genocide Museum and Memorial, Inc.
1140 19th Street, NW, Suite 600
Washington, DC 20036
Phone: 202-383-9009
Web: www.armenian-genocide.org
PRESS RELEASE
October 31, 2007
Web: www.armenian-genocide.org
CONTACT: Rouben Adalian
Phone: (202) 383-9009
E-mail: [email protected]
MINNESOTA COURT RULES AGAINST CAFESJIAN AND IN FAVOR OF THE ARMENIAN
ASSEMBLY AND THE ARMENIAN GENOCIDE MUSEUM
Armenian Genocide Museum Proceeds to Phase Two Contracts
New Plans to Be Unveiled at Armenian Assembly Gala in Los Angeles
Washington-October 31, 2007. The U.S. District Court in Minnesota has
granted a motion to dismiss the lawsuit filed by Gerard Cafesjian and
the Cafesjian Family Foundation against the Armenian Assembly of America
and the Armenian Genocide Museum and Memorial (AGMM). The lawsuit
sought to rescind the grant agreement the Foundation had made with the
Assembly with respect to the Armenian Genocide Museum project, so that
Cafesjian could recover the substantially appreciated real estate.
At the same time, AGMM announced the signing of Phase Two contracts with
the architectural firm of Martinez & Johnson (www.mjarchitecture.com)
and the museum planning firm of Gallagher & Associates
(www.gallagherdesign.com). Architectural and exhibit planning are
proceeding on schedule and the museum is slated to open before 2011.
In a statement issued today, the Armenian Assembly and the AGMM said:
"We regret that Gerard Cafesjian has filed these lawsuits and is now
attempting to try the case in the press. We appreciate the Minnesota
court's ruling in our favor to dismiss the lawsuit, and do not expect
any court to accept the misrepresentations promoted to stop or cloud the
completion of the museum.
Cafesjian formally abandoned the project in 2006 demanding return of
appreciated real estate. This left the other trustees with serious
problems, including unpaid taxes, leaking roofs, unpaid salaries, unpaid
contractors, an illegal lien on the properties, no audits, and
compliance problems with other donors' gifts, all of which left in
tatters a project that the Armenian-American community strongly endorsed
and wants completed. Unbeknownst to the other trustees, the District of
Columbia had reclassified the properties. In early 2007, after flat-out
non-compliance with the Assembly's 501(c)(3) conflict of interest policy
and after legal review, Cafesjian and John Waters were suspended from
the Assembly board. Cafesjian's formation of his personal lobbying
organization, USAPAC, has caused additional damage.
In May 2007, at a properly noticed meeting with a quorum, the trustees
voted to proceed with the project expeditiously. Cafesjian's appointed
trustee and long-time employee, John Waters, attended the meeting
despite his conflict of interest, but refused to account or report on
basic corporate and financial matters, in a clear breach of fiduciary
duties, interested only in Cafesjian's attempts to extract the
appreciated real estate. Waters voluntarily left when he could not get
his way, leaving the meeting with a quorum and the authority to proceed.
According to the recording (made without objection) of the meeting and
the transcript, Waters stated the following as he departed:
'Anything that you do from this point forward, you can consider it to be
a quorum if you like, because it says that it is. Anything you vote on,
you can do whatever you want, but...anyway...My participation in this
meeting is over.'
"In a series of front page stories in The Armenian Reporter, a newspaper
which he controls, Cafesjian and his staff have spared no effort in
disparaging the project, the Assembly, and other community members, with
no regard to journalistic ethics. Cafesjian has filed legal proceedings
characterized as frivolous, including one against the museum, and the
other trustees, Anoush Mathevosian, Hirair Hovnanian, and Van Krikorian,
personally. Yet the facts, confirmed by records made available after
Cafesjian abandoned the project, are that Cafesjian acquired the
properties adjacent to the intended museum building to construct a
monument to himself in the form of a "Cafesjian Museum," which would
dwarf the Armenian Genocide Museum. (See the attached drawing
commissioned in secret). Only when his attention turned elsewhere, he
transferred the properties to AGMM. Taking control of AGMM, he failed
to fund the project, mismanaged development, resigned, and abandoned the
properties and project in 2006.
"The Armenian Reporter also failed to inform the public that the
Assembly and AGMM have filed papers with the American Arbitration
Association in a good faith effort to reach an amicable conclusion
without making a public spectacle. Cafesjian has rejected this offer of
mediation and filed in court to stop the American Arbitration
Association from proceeding. Upon the Minnesota District Court's
decision to dismiss, the AGMM and Assembly renewed the offer for
mediation to Cafesjian attorneys and again was rebuffed.
"Once more we want to thank the people who have supported our efforts to
date and who continue to express confidence in the museum project,
despite the litigation unnecessarily started by Cafesjian. No court
will sanction the windfall profit return of appreciated property to the
Cafesjian Foundation or derail the process of completing the Armenian
Genocide Museum. The other museum trustees and stakeholders sincerely
wish that Cafesjian had not embarked on his misleading and destructive
course of action in public and hope that he will reconsider and resolve
the matter responsibly.
"The Armenian Genocide Museum trustees and the Armenian Assembly are
looking forward to unveiling the magnificent designs developed by our
two outstanding planning firms this weekend at the Assembly's 35th
Anniversary Gala event in Los Angeles. Remarkable progress has been
made in the last three months."
NR#2007-002
1140 19th Street, NW, Suite 600
Washington, DC 20036
Phone: 202-383-9009
Web: www.armenian-genocide.org
PRESS RELEASE
October 31, 2007
Web: www.armenian-genocide.org
CONTACT: Rouben Adalian
Phone: (202) 383-9009
E-mail: [email protected]
MINNESOTA COURT RULES AGAINST CAFESJIAN AND IN FAVOR OF THE ARMENIAN
ASSEMBLY AND THE ARMENIAN GENOCIDE MUSEUM
Armenian Genocide Museum Proceeds to Phase Two Contracts
New Plans to Be Unveiled at Armenian Assembly Gala in Los Angeles
Washington-October 31, 2007. The U.S. District Court in Minnesota has
granted a motion to dismiss the lawsuit filed by Gerard Cafesjian and
the Cafesjian Family Foundation against the Armenian Assembly of America
and the Armenian Genocide Museum and Memorial (AGMM). The lawsuit
sought to rescind the grant agreement the Foundation had made with the
Assembly with respect to the Armenian Genocide Museum project, so that
Cafesjian could recover the substantially appreciated real estate.
At the same time, AGMM announced the signing of Phase Two contracts with
the architectural firm of Martinez & Johnson (www.mjarchitecture.com)
and the museum planning firm of Gallagher & Associates
(www.gallagherdesign.com). Architectural and exhibit planning are
proceeding on schedule and the museum is slated to open before 2011.
In a statement issued today, the Armenian Assembly and the AGMM said:
"We regret that Gerard Cafesjian has filed these lawsuits and is now
attempting to try the case in the press. We appreciate the Minnesota
court's ruling in our favor to dismiss the lawsuit, and do not expect
any court to accept the misrepresentations promoted to stop or cloud the
completion of the museum.
Cafesjian formally abandoned the project in 2006 demanding return of
appreciated real estate. This left the other trustees with serious
problems, including unpaid taxes, leaking roofs, unpaid salaries, unpaid
contractors, an illegal lien on the properties, no audits, and
compliance problems with other donors' gifts, all of which left in
tatters a project that the Armenian-American community strongly endorsed
and wants completed. Unbeknownst to the other trustees, the District of
Columbia had reclassified the properties. In early 2007, after flat-out
non-compliance with the Assembly's 501(c)(3) conflict of interest policy
and after legal review, Cafesjian and John Waters were suspended from
the Assembly board. Cafesjian's formation of his personal lobbying
organization, USAPAC, has caused additional damage.
In May 2007, at a properly noticed meeting with a quorum, the trustees
voted to proceed with the project expeditiously. Cafesjian's appointed
trustee and long-time employee, John Waters, attended the meeting
despite his conflict of interest, but refused to account or report on
basic corporate and financial matters, in a clear breach of fiduciary
duties, interested only in Cafesjian's attempts to extract the
appreciated real estate. Waters voluntarily left when he could not get
his way, leaving the meeting with a quorum and the authority to proceed.
According to the recording (made without objection) of the meeting and
the transcript, Waters stated the following as he departed:
'Anything that you do from this point forward, you can consider it to be
a quorum if you like, because it says that it is. Anything you vote on,
you can do whatever you want, but...anyway...My participation in this
meeting is over.'
"In a series of front page stories in The Armenian Reporter, a newspaper
which he controls, Cafesjian and his staff have spared no effort in
disparaging the project, the Assembly, and other community members, with
no regard to journalistic ethics. Cafesjian has filed legal proceedings
characterized as frivolous, including one against the museum, and the
other trustees, Anoush Mathevosian, Hirair Hovnanian, and Van Krikorian,
personally. Yet the facts, confirmed by records made available after
Cafesjian abandoned the project, are that Cafesjian acquired the
properties adjacent to the intended museum building to construct a
monument to himself in the form of a "Cafesjian Museum," which would
dwarf the Armenian Genocide Museum. (See the attached drawing
commissioned in secret). Only when his attention turned elsewhere, he
transferred the properties to AGMM. Taking control of AGMM, he failed
to fund the project, mismanaged development, resigned, and abandoned the
properties and project in 2006.
"The Armenian Reporter also failed to inform the public that the
Assembly and AGMM have filed papers with the American Arbitration
Association in a good faith effort to reach an amicable conclusion
without making a public spectacle. Cafesjian has rejected this offer of
mediation and filed in court to stop the American Arbitration
Association from proceeding. Upon the Minnesota District Court's
decision to dismiss, the AGMM and Assembly renewed the offer for
mediation to Cafesjian attorneys and again was rebuffed.
"Once more we want to thank the people who have supported our efforts to
date and who continue to express confidence in the museum project,
despite the litigation unnecessarily started by Cafesjian. No court
will sanction the windfall profit return of appreciated property to the
Cafesjian Foundation or derail the process of completing the Armenian
Genocide Museum. The other museum trustees and stakeholders sincerely
wish that Cafesjian had not embarked on his misleading and destructive
course of action in public and hope that he will reconsider and resolve
the matter responsibly.
"The Armenian Genocide Museum trustees and the Armenian Assembly are
looking forward to unveiling the magnificent designs developed by our
two outstanding planning firms this weekend at the Assembly's 35th
Anniversary Gala event in Los Angeles. Remarkable progress has been
made in the last three months."
NR#2007-002