Case 1:18-cv-00397-RJA Document 1 Filed 03/29/18 Page 1 of 6

IN THE UNITED STATES DISTRICT COURT

FOR THE WESTERN DISTRICT OF NEW YORK
___________

UNITED STATES OF AMERICA,

Plaintiff,

v. Civil Action No. 18-CV-397

ALPHA GRP, INC. and ALPHA GRP, LLC, JURY TRIAL DEMANDED

Defendants.
___________

COMPLAINT

The United States of America, through its undersigned counsel, alleges upon

information and belief as follows:

NATURE OF THE ACTION

1. This lawsuit arises out of Defendants’ failure to pay monies to Plaintiff

United States due under a promissory note.

JURISDICTION AND VENUE

2. This Court has jurisdiction over the subject matter of this action pursuant to

28 U.S.C. § 1345.

3. Defendants’ actions and the events and omissions giving rise to Plaintiff’s

claims are based primarily upon conduct that occurred in this District. Therefore, venue is

proper in the Western District of New York, pursuant to 28 U.S.C. § 1391(b)(2).

4. As well, defendants have minimum contacts with the State of New York.

As set forth herein: defendants, in the State of New York, solicited and borrowed the

subject funds owed to the United States, entered into the subject promissory note which
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required that payments be sent to the State of New York, and defendants sent payments

owed on the subject promissory note to Plaintiff in the State of New York. Accordingly,

this Court has personal jurisdiction over Defendants.

PARTIES

5. The Plaintiff in this action is the United States of America.

6. Defendant, Alpha Grp, Inc., is a Delaware corporation with a principal place

of business in the County of Los Angeles, State of California. Upon information and belief,

Alpha Grp, Inc.’s business activities include coordinating and producing sports events at

venues throughout the United States.

7. Defendant, Alpha Grp, LLC, is a Delaware limited liability company. Upon

information and belief, Alpha Grp, LLC last operated from a location in the County of

Sonoma, State of California, prior to Alpha Grp, Inc. assuming all of its business activities

and liabilities in or about 2012.

ALLEGATIONS

8. On or about January 11, 2011, Defendant Alpha Grp, LLC and i2i

Settlement Partners (“i2i”) executed a promissory note (“the Promissory Note”), wherein

i2i agreed to loan Alpha Grp, LLC the sum of $750,000 (“the Principal”). At the time i2i

loaned the Principal to Alpha Grp, LLC and executed the Promissory Note, i2i operated at

a business location in the State of New York. A true and correct copy of the Promissory

Note is attached hereto and incorporated herein as Exhibit “A.”

9. Pursuant to the terms of the Promissory Note, Defendant Alpha Grp, LLC

was required to repay to i2i the Principal and interest at a rate of 7%. Exhibit A, at pg. 1.

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10. In or about November 2012, i2i and Alpha Grp., LLC executed an

Amendment to the Promissory Note (“the Amendment”), attached hereto as Exhibit B.

Under the Amendment, i2i and Alpha Grp., LLC consolidated payment of the Principal

with $133,700 in additional funds i2i loaned to Alpha Grp., LLC.

11. Pursuant to the Amendment, both the additional funds and Principal were

to be repaid to i2i by Alpha Grp., LLC in quarterly installments through January 2016, at

a rate of 7% interest.

12. In or about 2012, Alpha Grp, Inc. assumed all of Alpha Grp, LLC’s business

activities and liabilities, including the obligation to pay the remaining money owed on the

Promissory Note.

13. Upon information and belief, between January 11, 2011 and November

2015, Alpha Grp, Inc. and/or Alpha Grp., LLC made approximately $512,500 payments

towards the Promissory Note.

14. In November 2016, Christopher Dillon (“Dillon”), as president of i2i,

criminally forfeited and assigned to the United States i2i’s interest in the Promissory Note.

15. Dillon criminally forfeited and assigned i2i’s interest in the Promissory

Note as a part of a November 2016 plea agreement with Plaintiff and after this Court issued

a seizure warrant over the Promissory Note, finding probable cause to believe the

Promissory Note was funded with criminal proceeds. A true and correct copy of the

Seizure Warrant is attached hereto and incorporated herein as Exhibit “C.”

16. Dillon’s plea agreement resolved charges brought against him for

defrauding potential investors out of $5,395,862.00, by falsely promising these investors

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that money they invested with Dillon’s companies, including i2i, would be used to purchase

numerous life settlements.

17. At or about the time Dillon forfeited and assigned i2i’s interest in the

Promissory Note to Plaintiff United States, approximately $395,000, excluding additional

interest, remained owed on the note.

18. Commencing in or about November 2015, the United States made

numerous attempts to obtain repayment from Alpha Grp, LLC and Alpha Grp, Inc.

Specifically, the United States contacted attorneys representing Alpha Grp, Inc. and

entered into an agreement with Alpha Grp., Inc. requiring Alpha Grp, Inc. to pay

$50,000.00 towards the Promissory Note, every quarter with the first payment due at the

end of March, 2016.

19. Alpha Grp, Inc. paid the United States $50,000 in April 2016 and $20,000

in January 2017.

20. Since January 2017, however, neither Alpha Grp, Inc. nor Alpha Grp, LLC

have made any payments towards satisfaction of the Promissory Note, despite the United

States’ numerous demands for payment.

21. As of February 28, 2018, the remaining Principal and interest, which

continues to accrue, owed on the Promissory Note totaled $441,379.00.

22. Pursuant to the terms of the Promissory Note and Amendment, this amount

is immediately due and payable.

COUNT I
(Breach of Contract)

23. Plaintiff repeats and realleges the facts set forth in paragraphs 1 through 22.

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24. The Promissory Note constitutes a valid and binding contract under state

and federal law.

25. Alpha Grp, LLC’s failure to make payment, as required under the terms of

the Promissory Note and Amendment, constitutes a default thereunder.

26. By engaging in the conduct and activities described above, Alpha Grp, LLC

has materially breached the terms of the Promissory Note and Amendment and has

damaged Plaintiff.

27. Alpha Grp, LLC, therefore, is liable to Plaintiff for the Principal sum and

interest, which continues to accrue, owed on the Promissory Note.

28. Additionally, to the extent that, Alpha Grp, Inc. has assumed Alpha Grp

LLC’s operations and/or liabilities, Alpha Grp, Inc. is liable to Plaintiff for the Principal

sum and interest, which continues to accrue, owed on the Promissory Note.

29. Although payment has been demanded, Alpha Grp, LLC and Alpha Grp,

Inc. have failed to pay the indebtedness.

30. Pursuant to the terms of the Promissory Note, Plaintiff is entitled to

reasonable attorney’s fees from Defendants incurred in the collection of the indebtedness.

PRAYER FOR RELIEF

WHEREFORE, the Plaintiff, the United States of America, prays for entry of

judgment against Alpha Grp, LLC and Alpha Grp, Inc., jointly and severally, as follows:

a. For all sums due under the Promissory Note and Amendment in an amount not

less than $441,379.00;

b. For costs and attorney’s fees pursuant to the terms of the Promissory Note;

c. For any statutory interest and fees, at the highest rate allowable by law; and

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d. That this Court grant Plaintiff such other relief as the Court may deem just and

proper.

Dated: March 29, 2018

JAMES P. KENNEDY, JR.

United States Attorney

BY: ____s/Amy N. Okereke____________

AMY N. OKEREKE
Assistant United States Attorney
United States Attorney’s Office
Western District of New York
138 Delaware Avenue
Buffalo, New York 14202
(716) 843-5822
Amy.Okereke@usdoj.gov