How We Got Here, Part One

[Because this timeline project I've been working on is by it's nature so time-consuming, I've decided to release it in two separate posts; this is the first one. It briefly covers the "pre-history" (2002 to 2006) of all this, as well as the events leading up to the calamitous One Mighty Party in Paris in 2007, and it's aftermath in 2007-2008.

Part Two will deal with the even more wild and woolly events of 2009, in which the criminal behavior, incompetence, lies and deceptions of Johnny Chisholm and JustCircuit brought about the near complete destruction of this once awesome party weekend. And when it's finished, I'll simply merge the two timelines into one.

In a way, doing it this way is a good thing, because Part One is really all about Ray DeForest and his nightmare experience with OMP Paris. The DeForest case has never really gotten the attention it deserves, either here or on Facebook (certainly, not to the extent the Bardfield case has), and so, this post should serve to rectify that. As you'll see below, 2007 was the spark, and 2008 was the lit fuse, which led to the implosion we all know and hate in 2009.]

June 2002: Johnny Chisholm and Jeffrey Sanker did the very first One Mighty Party together in Orlando at Disney's MGM Studios. Legend has it Sanker did not really want to work with Chisholm, but Chisholm went behind Sanker's back and got the Disney contract, so Sanker had no choice but to work with Chisholm. (As a footnote, Chisholm did not come up with the "One Mighty Party" concept. It was done many years earlier by Sanker in association with PROBE in Los Angeles, and the name was brought to Orlando)

June 2003: Sanker and Chisholm did One Mighty Party again, at Disney's MGM Studios.

January 9, 2004: Disney's legal department sends this rather unfriendly letter to Chisholm:


June 2004: There was no One Mighty Party with Chisholm, and Sanker and Baker worked together. Chisholm later (in April of 2005) said in a press release that "the year off was necessary for him to be able to return as a single promoter and to re-think his approach to organizing and producing this event."

Early 2005: Chisholm acquired the rights to the Reunion pool parties.

April 21, 2005: At the 11th hour, Chisholm bought Baker's interests in the weekend for $1.2 million dollars. As part of the transaction, Baker gave Chisholm a 6 year non-compete agreement (which would expire after April 2011, OR, according to Florida law, whenever the buyer ceased to have "legitimate business interests justifying the restrictive covenant." See FL Stat. 542.335(b)). Baker wisely (as we shall soon see) demanded all cash up front prior to executing the transaction.

And where did Chisholm get this $1.2 million dollars? As will soon be seen as a constantly recurring pattern here in this timeline when it comes to his circuit party operations, Chisholm used other people's money to fund it. In this case, he borrowed it from "Bay Bridge Building Limited Company," one of many firms owned by north Florida real estate developer Julian MacQueen. In return for the loan, Chisholm gave Bay Bridge a promissory note secured by a second mortgage on 800 Bourbon Street, the property which houses the New Orleans nightclub Oz.


More on this Bay Bridge "OMW" loan later in the timeline (ie, see June 11, 2008 entry).

June 2005 (and 2006): Chisholm produced two relatively uncontroversial One Mighty Weekends. It was during this period that a symbiotic relationship developed between Chisholm and JustCircuit, a South Florida based online discussion board (although in reality, very little discussion seems to take place there). They've become, in effect, the propaganda arm of Johnny Chisholm, and to illustrate this point I've inserted into this timeline excerpts of the site owners' Chisholm-related posts, each on the exact date they were posted [Note: This symbiotic relationship referred to would in 2009 extend beyond a mere propaganda-services-for-press-passes exchange, as we shall see in Part Two of this timeline...].

January - February 2007: In early January 2007 Chisholm approached soon-to-be-plaintiff Ray DeForest regarding an investment opportunity: $150,000 to buy a 20% share in OMW Paris (or "Johnny Chisholm Global Events, LLC" as the company was formally known) scheduled for June 2007 at the Disneyland Resort Paris. A series of solicitations ensued, one of which occurred at a "very lavish condominium on the beach" where Chisholm had invited DeForest to stay. During the visit, Chisholm "repeatedly boasted of his wealth and the expense of the condominium." Chisholm told DeForest "that his condominium was used just for investors in his other entities as well as their friends and clients."

DeForest "would later learn that Chisholm did in fact not own the condominium or his home and this charade was part of the scheme."

January 24, 2007: JustCircuit writes:

A TRIUMPHANT JOHNNY CHISHOLM MARCHES INTO PARIS

France has experienced many exciting moments in its long history. It was announced today that even more excitement is on the way to this popular European destination, courtesy of Circuit King *Johnny Chisholm*. One Mighty Party Paris will be presented by Chisholm in association with New York promoter *Ray Deforest* at Disneyland Paris on June 29-30, 2007. The venue will host the very first European One Mighty Party and will list the Elton John AIDS Foundation as its beneficiary, with a minimum $50,000. donation generated for the charity.

"One Mighty Weekend events in the United States attract 135,000 guests, including International visitors from thirty different countries around the globe" stated Chisholm, who has captured JustCircuit's Promoter of the Year Award for the past two consecutive years. "Now, we are ready to go GLOBAL and take the party to THEM--and Paris is the first stop." JustCircuit will be live from Paris, bringing the excitement to the world throughout the weekend.

January 25, 2007: JustCircuit writes:

CHISHOLM SETS THE BAR ONCE AGAIN WITH PARIS PARTY

The day following the mega-announcement that Circuit promoter *Johnny Chisholm* will expand his One Mighty Party beyond the Orlando horizon to Paris, France, one can not help but focus on the hints that Chisholm's One Mighty Weekend, formerly Gay Day Orlando, is headed globally in nearly every direction.

[...]

Johnny Chisholm proves once again what many have already determined...he IS the King of Circuit and a student of the "philosophical school of Circuit reinvention." He has the dreams and ability to bring back the parties we nearly lost only a few short years ago due to greed, mismanagement, and pessimism. The quiet, polite and honorable Johnny Chisholm has once again taken the Circuit, and those of us who follow the Circuit, to a whole new level. And the world is Johnny Chisholm's oyster!

[...]

Johnny Chisholm was JustCircuit's very first inductee into the Circuit Hall of Fame(tm), and for very good reason. The Circuit is still alive, changing, and growing in part because of the innovation, optimism and hard work by Chisholm and his entire team. The bar has certainly been set high for others who desire to create a successful Circuit party. The Circuit anxiously awaits Johnny Chisholm's next dream.

February 27, 2007: Chisholm faxed DeForest a signed and notarized memorandum, confirming his purchase of a 20% stake in OMW Paris for $150,000. Other investors were listed on the memorandum, "who in the end never invested."

March - May 2007: During this period, several events of a continuing nature occurred in a business relationship both sides agree was a "struggle:"

- Chisholm "failed to issue [DeForest] any operating agreement and failed to obtain the [life] insurance policy on Defendant Chisholm as promised as a condition" of their agreement;

- Chisholm repeatedly refused "to make the books of the company available for inspection" and failed "to provide any accounting;"

- Unbeknowst to DeForest during this time (thanks to the aforementioned refusals to allow inspection of the books), "a series of questionable payments or loans were made to or on behalf of Defendants to other related entities owned by Defendant Chisholm," "at a whim." Examples of where DeForest's wrongly diverted funds went include 1) paying debts and expenses related to OMW Orlando; 2) Chisholm's company payroll in his other corporations; and 3) "paying Johnny Chisholm's personal American Express Card."

- What DeForest did know, however, was that ticket pre-sales were alarmingly lower than projected, and that advertising was woefully inadequate. In fact, news reached DeForest that "promoters and advertisers in Europe were not being paid" by Chisholm, and as a result "promoters in Europe were actually advising against the event."

- A concerned DeForest "continually" called Chisholm, pleading with him to adopt a better marketing strategy. And he adamantly refused to increase costs in other areas. Which as we will soon see was a problem for Chisholm, as he wanted to increase costs dramatically by hiring another entertainer...

- Weekly salary checks due DeForest as co-promoter began bouncing.

April 3, 2007: Chisholm secretly sells half his shares (40%) to Bobby Warner for $350,000. According to court documents, they begin making plans to hire Mariah Carey as a big name (and big dollar) performer for OMW...again in secret, as they realize that DeForest would strenuously oppose the plan should he learn of it.



May 23, 2007: In an evening phone conversation, Chisholm offers to buy back DeForest's 20% for the original purchase price of $150,000. DeForest readily agrees.

May 24, 2007: Chisholm writes up the repurchase offer in an email. Naturally, under this sort of agreement, DeForest would likely consider himself still a partner unless and until he got his $150,000 back, which Chisholm promised within 45 days "or sooner, as soon as I am able to secure a new mortgage." (The 45 days was actually written into the contract; the vague mortgage reference was NOT; this will become important later...)

May 25, 2007: Chisholm now tells DeForest there is a problem: His new investor, Bobby Warner, required DeForest's "interest to be closed in order for her to invest any funds into the company." (Note that this is a deception - Warner had in fact already invested her funds, see April 3 entry). So, Chisholm convinced DeForest to consider his shares transferred immediately, and to accept a deferred but slightly increased payment later ($160,000 within 45 days, an additional $15,000 within 30 days after that). At this point, DeForest happily considers himself out of the deal, and Chisholm (and Warner) no longer consult with him as a partner.

June 1 - 3, 2007: Chisholm produces OMW Orlando, with all the main events at Disney venues.

June 7, 2007: With the fiscally responsible DeForest now safely out of the way, Chisholm and Warner proceeded with their cost-intensive strategy, and signed Mariah Carey to perform at OMP Paris for $2,000,000. This and other decisions resulted in production costs for the event to soar to over 200% higher than was projected during the initial DeForest solicitation.

June 11, 2007: JustCircuit writes:

CIRCUIT KING JOHNNY CHISHOLM MAKES MORE MAGIC

No one is surprised these days at the magic coming from the man many describe as the undisputed King of Circuit...Johnny Chisholm. In the latest "who's your daddy" reinvention of the modern-day Circuit party, Pensacola, FL-based Chisholm announced to the Circuit that superstar entertainer *Mariah Carey* will headline his latest product One Mighty Party/Paris, to be held June 29 at Disneyland Paris. Already announced to perform will be disco diva *Gloria Gaynor*, who wowed the audience at One Mighty Party/Orlando in 2006, and eventuallyu went on to win "CIRCUIT PARTY OF THE YEAR" (JustCircuit Awards 2006.) This magical restructuring by Chisholm of what was once considered a "declining Circuit" has methodically taken familiar events and added features such as main-stream entertainment, unique show variety and even a $250,000 fireworks display digitally synced to special dance tracks unlike any seen before. And of course the beneficiary of these events is the Elton John AIDS Foundation, headed by Sir Elton John. The giving keeps on giving. The reach of Chisholm has now crossed the Atlantic into uncharted European territories using the Disney mantra along the way to keep a consistent expectation from the Circuit. Disney's exquisite attention to every fine detail is then added to the event. The international expansion gets its first test later this month as Paris kicks off a One Mighty Party which will eventually arrive at the doors of countries around the world. Never before has the Circuit experienced the combinations of talent utilized by Chisholm Circuit Events to create the Chisholm magic. The team works year round to gauge the interests of the Circuit and uses individual talents to make the progress. And there is no team like the Chisholm team, for sure. Stay tuned to JustCircuit.com throughout the month of June for updates on events as we approach One Mighty Party in Paris June 29.

And there was also this Chisholm press release:

MARIAH AT "ONE MIGHTY PARTY" IN DISNEYLAND PARIS

Johnny Chisholm, founder and producer of the One Mighty Weekend events, today announced that the biggest female artist of all time, Mariah Carey, will perform a special set at One Mighty Party Paris on 29th June. Carey’s exclusive performance will celebrate the European debut of the party Chisholm made famous as an annual event at The Walt Disney World® Resort Orlando, which benefits the Elton John AIDS Foundation each year.

[...]

“Mariah Carey is a worldwide musical superstar and we are thrilled to host her at our party,” said Chisholm. “We anticipate this event will sell out quickly, so we encourage everyone to buy tickets as soon as possible to secure your place at Europe’s first One Mighty Party.”

Over the past 14 years, Chisholm’s annual One Mighty Weekend at The Walt Disney World Resort Orlando has grown to become America’s largest gay and lesbian celebration. The event also has generated sizeable contributions to its beneficiary organization, the non-profit Elton John AIDS Foundation (www.ejaf.org).

[...]

June 18, 2007: JustCircuit writes:

A REVIEW: ONE MIGHTY, MIGHTY WEEKEND!

The world of Disney is certainly a wonderful world! Promoter *Johnny Chisholm's* purchase of major events during Gay Days Orlando just a few short years ago insured that the excitement and joy the Circuit just experienced within the walls of Disney and Universal Studios would continue.

[...]

Before Chisholm’s arrival, fierce competition struck a disharmonious chord among Circuit attendees split on which party to attend, threatening the event’s success and future. Chisholm’s desire to produce “an amazing event like no other, even if we only sell three tickets” leaves an impression and precedence that no other promoter or party producer has ever given us. The Circuit is alive and thriving because of those like Johnny Chisholm and the people around him who make his magic happen.

*Donna Summer* at One Mighty Party made Circuit history as a music legend returned to a primarily Gay and Lesbian community having once criticized that same group. Her Circuit debut last week facilitated by music insider *Arlene Weiss* of Los Angeles, drove the ticket sales sky high to record levels for One Mighty Party—all benefiting the Elton John AIDS Foundation. Industry leaders regard Ms. Weiss and Chisholm’s efforts to obtain Donna Summer "monumental" and certainly historic. Many wonder aloud how Chisholm could have been so lucky as to have had Weiss in his corner. The answer...when all that is good about the Circuit comes together, success is a certainty. Reinvention is working.

[...]

With all eyes now on Chisholm's expansion of One Mighty Party beginning June 29 in Paris, Chisholm will again be relying upon the strengths he currently enjoys with a supportive Circuit and efforts of exceptionally talented individuals. The risk of large international investment is overshadowed by the risk of failing to acknowledge those who have worked so diligently to insure success for Chisholm and the Circuit as a whole. All bets are on the man with the big heart who can see the big picture like no other!

June 29, 2007: Early in the day, JustCircuit writes:

ONE MIGHTY PARIS REPORT-FRIDAY NOON (EDT)

Tonight's One Mighty Party at Disneyland Paris will once again be an historic event as Circuit promoter Johnny Chisholm and team bring the successful party concept across the pond for all of Europe to enjoy.

The performance of superstar entertainer Mariah Carey will be the highlight of the evening and will be much to the delight of the thousands of attendees expected through the Disney gates, beginning at 8 PM (2PM EDT) tonight. Also performing is disco diva Gloria Gaynor. Among the DJ's for tonight's party are DJ Manny Lehman and DJ Wayne G. (London). Wayne G. and Tom Stephan (aka SuperChumbo) arrived only moments ago and were greated by JustCircuit in the One Mighty Party welcome center, located at the New York Resort on Disneyland property, steps away from the main gate.

[...]

Perhaps the most exciting moment of the past 48-hours was when the call came from the airline that the MIS-PLACED LUGGAGE (several from Chisholm, one from JustCircuit) had been located and were available at the airport office. Important bags? JustCircuit's bag contained cameras and computer equipment needed for tonight's coverage. Chisholm's team reports that credit-card and ticketing equipment is included in one of their bags.

No need to fret now as all is good and in place for an amazing evening ahead! Stay tuned to JustCircuit for continuing pictures and details of tonight's party.

June 29, 2007: OMP Paris was a spectacular flop.

Those few who were lured to this event by JustCircuit prognostications of "a triumphant Johnny Chisholm march[ing] into Paris," "set[ting] the bar once again with this Paris party" were instead attendees of quite possibly the biggest boondoggle in the history of the circuit (see eyewitness account to the left). As the judge in the DeForest case summed up: "Chisholm spent $1.5 million to rent Disney’s Paris site, paid $2 million to hire singer Mariah Carey, and was warned by Disney to expect no more than 300 people instead of the projected 12,000 to 15,000. The Paris event resulted in a loss of $3 million." As DeForest put it: "The event, due to Defendants' negligence and fraudulent actions, was a failure. Defendants did not follow their past practices, isolated critical groups, such as promoters and marketers, and ignored me."

Johnny Chisholm (in his Answer to the DeForest lawsuit) had an even more interesting theory on why the party failed:

...while JustCircuit amazingly managed to say nothing at all. Beyond a few desultory photos seemingly taken at angles so as to obscure the crowd size, OMP Paris was never again mentioned on their site. It would appear that their lost luggage was indeed the most exciting moment of the trip.

July 9, 2007: The 45 day deadline for Chisholm to pay DeForest the first $160,000 for his shares comes due. And on this date and beyond, according to DeForest, "payments to me were never made despite numerous subsequent promises and excuses by Defendants, and despite their acknowledgment that the transaction had been completed."

May 21, 2008: The first of the four current Chisholm bankruptcy cases is filed today...Emerald City of Pensacola files for Chapter 11. More on this case here.

June 5 - 8, 2008: Chisholm produces OMW Orlando, this year partly at Disney, but partly at Universal Orlando as well. As later bankruptcy papers would show, Chisholm had by the end of this weekend racked up massive debt with both theme parks; over $200,000 to Universal, and over $450,000 to Disney Resorts (parent of both Euro Disney and Disney Orlando).

June 11, 2008: The second of the four current Chisholm bankruptices occurs today...800 Bourbon Street, LLC, files for Chapter 11. As I noted earlier (see April 21, 2005 entry) this is the Chisholm company that owns the real estate in which the Chisholm-owned New Orleans nightclub business Oz is located. Since this was the property on which Bay Bridge had it's security interest for the original $1.2 million dollar "One Mighty Weekend" purchase loan, Bay Bridge was listed in this bankruptcy as a creditor.

And how had this loan been doing since it was made back in April of 2005? Not so good, according to Bay Bridge's bankruptcy claim:


It appears that no payment had been made on the loan in 2006, 2007, and the first half of 2008, and as a result $52,615.05 in penalties and late fees had been racked up. In fact, it seems Chisholm had been compelled to ask Bay Bridge for an additional $200,000 in loans in 2006. And so, with accumulated interest added in, Bay Bridge's claim in this bankruptcy came to $1,360,571.01.

More on this delinquent "OMW" loan and it's treatment in this 800 Bourbon bankruptcy later in the timeline (see May 20, 2009 entry).

October 28, 2008: "After months of tall stories" about paying DeForest soon, Chisholm would finally inform him "that he would no longer be able to honor our contract." He claimed that the contract was "contingent on him getting a mortgage" (despite this condition not, in fact, being in the contract) and as such...surprise! DeForest, he now claimed, was still a shareholder, and had been all along. And being a shareholder in a doomed enterprise, had lost his money fair and square.

Not surprisingly, DeForest and his attornies did not agree with this interpretation. So, on this date they send a demand letter, threatening to sue Chisholm for Civil Theft (which calls for treble damages).

October 29, 2008: JustCircuit writes:

One Mighty Weekend Update: DJ lineup announcement delayed; Announcement scheduled for later this week on JustCircuit.com

Johnny Chisholm Circuit Events has delayed the announcement of One Mighty Weekend 2009's DJ lineup until later this week, JustCircuit.com has learned. The delay was announced Tuesday in order to accommodate last minute venue and DJ additions. One Mighty Weekend will be June 4-7, 2009 in Orlando, FL during the Gay Days weekend. Chisholm promises both new and familiar talent as well as new and familiar venues. One Mighty Weekend has won numerous JustCircuit Awards, including Circuit Party of the Year, Best Afterhour and Best Pool Event. JustCircuit Hall of Famer Johnny Chisholm took over operations of One Mighty Weekend in 2005.

JustCircuit.com and JustCircuit.MAG is a proud sponsor of One Mighty Weekend. Stay tuned to JustCircuit.com for updates and the official, exclusive announcement now coming this week!

October 31, 2008: DeForest sues Chisholm for fraud, conversion, unjust enrichment, breach of contract, breach of fiduciary duty, statutory Breach of Duty of Loyalty and Care, and violation of the Florida Inpection of Records statute (a charge of Civil Theft would be added later). DeForest vs. Chisholm is officially on (although it would not be generally known about until Tony Hayden of TheCircuitDog.com began his reporting of the case in 2009).

November 6, 2008: JustCircuit writes this curiously worded entry...italics are mine:

Johnny Chisholm announces One Mighty Weekend DJ lineup; New talent for One Mighty Weekend; Announcement has been much anticipated

Circuit King Johnny Chisholm has announced the 2009 One Mighty Weekend DJ lineup. Familiar faces along with new talent make up the award-winning weekend. New to the lineup will be DJ Peter Rauhofer, DJ Offer Nissim, DJ Mike Cruz and DJ Raphi Rosario, who will be teaming with DJ ABEL.

DJs annnounced by Chisholm include: Phil B., Eddie Baez, Roland Belmares, Don Bishop, Alyson Calagna, Mike Cruz, Joe Gauthreaux, Wendy Hunt, David Knapp, Manny Lehman, Tony Moran, Offer Nissim, Peter Rauhofer and Rosabel (DJ's Ralphi Rosario and ABEL.) One Mighty Weekend will take place in Orlando June 4-June 7, 2009. The host hotel remains the Buena Vista Palace Resort and Spa, located on Disney property. Reunion Events will take place at the host hotel.

JustCircuit remains a proud sponsor of One Mighty Weekend and Johnny Chisholm Circuit Events. Watch for venue announcements coming soon to JustCircuit.com.

December 2008: Despite owing Disney Resort Destinations close to $500,000, Chisholm begins an aggressive pre-sale campaign with uncontracted Disney venues prominently advertised as main party locations:


[And thats a wrap on Part One of the timeline. I'll no doubt revise it from time to time, as more evidence comes in. Part Two will pick up the story in January of 2009. It'll take a while to do, I imagine, as 2009 was eventful indeed...]