Palm Beach businesswoman Johnna Pomasan has filed a lawsuit against fashion designer Alvin Valley, claiming that Valley scammed her and her husband out of $750,000. The lawsuit alleges that Valley convinced the couple to loan his company $640,000 secured by convertible promissory notes. However, Pomasan discovered that the company’s common stock had limited value and there was no likelihood of a qualified financing event as described in the notes.
According to court papers, Valley approached the Pomasans in the spring of 2023 with an alleged business opportunity related to his company, Alvin Valley Limited Inc. The lawsuit claims that Valley and AVL falsely represented that the convertible promissory notes would be honored, despite having no intention of doing so. The suit also alleges that the fashion brand has refused to repay the principal amount and accrued interest despite multiple demands for payment and the expiration of the maturity date.
Pomasan has alleged that she has tried to serve Valley with court papers 17 times, but he has been purposely evading the affidavits since April. She took her battle public by announcing on social media that she had cut ties with Valley after careful reflection. Pomasan has received support from the Florida social set and encourages supporters to contact her lawyer, John Agnetti, to give statements for the judge in the case. Valley reposted her announcement in a video reel set to Madonna’s track, “The Power of Good-Bye.”
A source close to Valley confirmed that he has not officially been served the papers, but denied that he was evading them. The source stated that Valley travels frequently and has not been home when attempts at service have been made. The insider also suggested that the drama was a result of investor relations gone bad, with some Palm Beach socialite jealousy mixed in. Pomasan denied these allegations, calling them a poor attempt at deflection and diversion from the real issue of Valley taking her money and not living up to his obligations.
A spokesperson for Valley stated that due to the active legal case, Valley has been instructed not to comment. The spokesperson expressed hope that everything would be settled in court in the weeks to come. The spokesperson also mentioned that business was continuing as usual for Valley, who had recently launched a new denim line that was reportedly doing well. Valley’s spokesperson emphasized that despite the legal issues, Valley’s business was still thriving.
