Palm Beach businesswoman accuses fashion designer of fraud in $750,000 lawsuit

Palm Beach businesswoman accuses fashion designer of fraud in $750,000 lawsuit

In a shocking turn of events, Palm Beach businesswoman Johnna Pomasan has filed a lawsuit against renowned fashion designer Alvin Valley, alleging that he scammed her and her husband out of a staggering $750,000. The lawsuit, which was filed earlier this year, claims that Valley convinced the couple to loan his company a total of $640,000 through convertible promissory notes, which they now believe were misrepresented.

Allegations of misrepresentation and fraud

Pomasan’s legal documents assert that the couple was led to believe that the convertible promissory notes would be honored. However, they later discovered that the company’s common stock held little value and that there was no realistic chance of a ‘qualified financing’ event occurring, as outlined in the notes. The lawsuit states, “Alvin and AVL falsely represented that the convertible promissory notes would be honored when at all material times, Alvin and AVL had no intention of honoring the convertible promissory notes.”

Attempts to recover funds

Despite multiple demands for repayment, the lawsuit claims that Valley’s fashion brand has refused to return the principal amount along with accrued interest, even after the maturity date had passed. Pomasan’s legal team has reportedly attempted to serve Valley with court papers on 17 occasions, but they allege he has been “purposely evading affidavits.” This ongoing saga has drawn significant attention, especially as Pomasan took to social media to announce her decision to sever ties with Valley, stating, “Since 2023, I have worked tirelessly to support Mr. Valley with the aim of elevating his brand.”

Community support and ongoing drama

The case has garnered support from the local social scene, with Pomasan expressing gratitude to those who have reached out to her during this tumultuous time. She has encouraged her supporters to contact her lawyer, John Agnetti, to provide statements for the judge. In a twist, Valley responded to Pomasan’s announcement by sharing a video set to Madonna’s “The Power of Good-Bye,” suggesting a complicated emotional landscape surrounding the case.

A source close to Valley has claimed that he has not officially been served the lawsuit papers, insisting that he is not evading the situation. The source attributed the drama to “investor relations gone bad,” hinting at underlying tensions within the Palm Beach socialite community. Speculation arose that Pomasan’s motivations were fueled by jealousy over Valley allowing another socialite, Kara Ross, to host a trunk show at her home, a claim Pomasan vehemently denied as a “poor attempt at both deflection and diversion.”

As the legal battle unfolds, a spokesperson for Valley stated that he has been advised not to comment due to the active legal proceedings. However, they expressed hope that the matter would be resolved in court soon, while also noting that Valley’s business continues as usual, with the launch of his new denim line reportedly performing exceptionally well.