Fashion Designer Alvin Valley Faces $750,000 Investment Fraud Lawsuit in Palm Beach – MoneyCheck

TLDR:

• Palm Beach businesswoman Johnna Pomasan sues designer Alvin Valley for $750,000
• Lawsuit claims Valley convinced Pomasans to loan $640,000 through convertible promissory notes
• Pomasan alleges Valley had no intention of honoring the notes
• 17 failed attempts to serve Valley with court papers since April 2024
• Valley’s spokesperson says he hasn’t been served and maintains business continues as usual

Fashion designer Alvin Valley, known as the “King of Pants,” faces a lawsuit from Palm Beach businesswoman Johnna Pomasan, who claims she was defrauded of $750,000 in investments made to his fashion brand.

The legal dispute, filed in early 2024, centers around a series of convertible promissory notes totaling $640,000 that Pomasan and her husband invested in Valley’s company, Alvin Valley Limited Inc., during spring 2023.

According to court documents, Pomasan alleges that Valley approached the couple with what he presented as a business opportunity. However, the lawsuit states that the couple later discovered the company’s common stock held limited value, and there was no realistic prospect of a “qualified financing” event as outlined in the investment agreement.

The legal filing further claims that Valley and his company made false representations about honoring the convertible promissory notes. Pomasan’s legal team asserts that Valley had no intention of fulfilling these financial obligations from the beginning of their agreement.

Despite reaching maturity date, the fashion brand has allegedly refused to repay both the principal amount and accrued interest, according to the lawsuit. This occurred despite multiple requests for payment from the Pomasans.

The situation has been complicated by difficulty in serving Valley with court papers. Pomasan’s lawyer reports 17 unsuccessful attempts to serve Valley since April 2024, suggesting that the designer is deliberately avoiding service of legal documents.

Pomasan took to social media in October 2024 to publicly announce her separation from Valley’s brand. In her statement, she explained that she had worked to support Valley’s brand throughout 2023, but realized their values and principles were not aligned.

The Palm Beach social community has reportedly rallied around Pomasan. She has encouraged supporters to contact her lawyer, John Agnetti, to provide statements for the presiding judge in the case.

Valley’s response to the situation has been limited. He reposted Pomasan’s announcement as part of a video set to Madonna’s “The Power of Good-Bye,” with the caption “Sometimes is hard to say goodbye.”

A source close to Valley disputes claims that he is evading service, explaining that his frequent travel between Paris and the Hamptons has made him difficult to locate. The source suggested that Pomasan could have served him during his summer stay in the Hamptons but did not do so.

The same source characterized the conflict as “investor relations gone bad” and suggested that social dynamics played a role, claiming Pomasan became upset when Valley allowed another Palm Beach socialite, Kara Ross, to host his trunk show.

Pomasan strongly rejected these claims, calling them a “poor attempt at both deflection and diversion.” She emphasized that the core issue remains Valley’s alleged failure to meet his financial obligations.

Valley’s spokesperson has stated that the designer cannot comment on the active legal case but expressed hope for a resolution in the coming weeks. Meanwhile, the representative noted that Valley’s business continues to operate, with a new denim line recently launched.

The lawsuit seeks repayment of the invested funds, with Pomasan’s legal team actively pursuing service of court documents to move the case forward.

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