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The Alliance is seeking six figures in damages from Ryan Weyandt, who resigned as CEO last year. Weyandt is also facing felony charges for alleged possession of explicit content of minors.
A Minnesota federal judge has restored the LGBTQ+ Real Estate Alliance’s control of its business and financial accounts one month after former CEO Ryan Weyandt seized them amid allegations the group had fallen into disrepair.
The ruling is the latest in a lawsuit filed July 1, and comes as Weyandt also faces felony charges in Minnesota for allegedly possessing explicit content of minors. Both the lawsuit and the felony charges have so far flown under the radar and are being reported in the press for the first time here.
In the lawsuit, Judge Eric Tostrud’s ruling on Friday granted an Alliance request that Weyandt be forced to return the group’s domains, emails, social media profiles and financial accounts. Weyandt must close the Alliance’s Chase account by Aug. 25 and cannot re-access the remaining accounts.
Tostrud also barred Weyandt from speaking or acting on behalf of the Alliance, a decision partially influenced by his criminal case.
“Because of his illegal actions, we were forced to file a lawsuit in federal court,” an Alliance spokesperson told Inman in an emailed statement on Monday. “We initially came to a stipulated agreement with Ryan on the record, and the judge later granted our motion for a temporary injunction. The Court’s order prohibits Ryan from holding himself out as having the authority to act or speak on behalf of the Alliance. The Court also ordered Ryan to turn over all assets to the Alliance.”
“So far, Ryan has cooperated,” they added.
Weyandt did not respond to Inman’s multiple requests for comment.
The battle between the two parties began in June, when Weyandt — who previously resigned from his role as CEO in December — sent emails to Alliance leadership, members and vendors stating that he’d taken emergency oversight as the nonprofit’s incorporator and listed agent with the Internal Revenue Service (IRS) and Minnesota Secretary of State.
Weyandt discussed his reasoning in a Substack post, where he made several allegations against Alliance leadership, including unchecked spending, cancelling national votes and events without proper notice, leaving Board seats unfilled, and pursuing bankruptcy without notifying him or consulting a certified public accountant or attorney.
Weyandt forwarded his concerns to the Minnesota Attorney General’s Office and the Minnesota Council of Nonprofits, and requested an emergency temporary restraining order with the Dakota County Civil Court; however, those efforts stalled, according to the Substack and several exhibits Weyandt filed in response to the Alliance’s preliminary injunction request in the civil suit.
“When the [temporary restraining order] failed on financial grounds — because the e-file system is built for lawyers, not everyday people like me — I passed all evidence to the Attorney General and AG’s lead investigatory unit to take up if they choose,” he said in the Substack and court exhibits. “I have no money left to fight this alone. I am unemployed, on unemployment insurance, and cannot afford private legal representation for the final mile.”
Inman has reached out to the Minnesota Attorney General’s Office and the Dakota County Civil Court for comment on Weyandt’s complaints. They did not respond in time for publication.
Now that the Alliance has regained access to its accounts, the group is looking to recoup lost revenue from the month Weyandt had control of its website and trade secrets, which primarily includes the group’s customer list of more than 10,000 “LGBTQ+ industry influencers” and other real estate practitioners.
The Alliance’s civil complaint includes eight counts, six of which involve damages exceeding $50,000 each. The final two counts for injunctive and declaratory relief would permanently ban Weyandt from the Alliance and require Weyandt to cover the Alliance’s legal fees and costs.
Despite the ongoing civil suit, an Alliance spokesperson said the group is fully functional with interim CEO Mary Mancera at the helm. The comment may quell fears that the Alliance could have been on track to suffer a fate similar to NAGLREP, which has struggled to regain its prominence following founder Jeff Berger’s alleged mismanagement of the group.
The spokesperson also said the Alliance is moving forward with its mission to protect LGBTQ+ housing rights.
“[Ryan made] completely baseless claims that he could not substantiate in court,” an Alliance spokesperson said in an emailed statement. “Because we remain in litigation, we can’t comment further.”
As for the criminal case, Weyandt is facing five felony charges in the Dakota County District Court for allegedly possessing explicit content of minors.
The National Center for Missing & Exploited Children received a CyberTip with Weyandt’s IP address in November, which led authorities to issue a search warrant and seize several electronic devices with thousands of videos and images of minors engaged in sexual activities, according to a July arrest warrant.
The former CEO posted a $150,000 bond in July and is currently prohibited from leaving the state of Minnesota without prior court approval. He cannot have any contact with minors online or in person, among several other restrictions.
Each charge carries a maximum prison sentence of five years and a maximum fine of $5,000.
