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Galaxy Brewing Company files suit against property group

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BINGHAMTON (WBNG) -- A new lawsuit filed in Broome County Supreme Court accuses a well-known property group of "a conspiracy for the purposes of defrauding and deceiving the Plaintiffs".

According to a suit filed on June 11, Michael and Seth Weisel, Galaxy Brewing Company, and GBC filed a lawsuit against Alan and Isaac Anzaroot, Conrad Group, and AJEM Group.

The 12-page lawsuit accuses the defendants of breaching an agreement made between the plaintiffs and the defendants. The breach of the agreement caused damages totaling "at least" $1,500,000, according to the document.

The plaintiffs are seeking compensatory and punitive damages "due to the willful and wanton false and malicious representations and actions of the Defendants."

Scroll down to read the lawsuit in its entirety.

WHAT THE PLAINTIFFS SAY ABOUT THE AGREEMENT

According to the lawsuit, the Anzaroots met with the Weisels in December of 2018 to talk about "the possibility of acquiring an interest in Galaxy and GBC."

At the time, the Weisels held a 100% interest in the companies, as well as owned the property at 41-43 Court Street in Binghamton, according to the suit. To convince the Weisels, the defendants "promised" the following:

  • Renovate the defendant-owned 55-65 Clinton Street in Binghamton, also known as the Titchener Building to house the brewery, office space, a game room/taproom/beer garden, install a trench drain, and construct a concrete floor to support a 60,000-pound silo.
  • Provide money to finance Galaxy's new brewing equipment.
  • Hire Michael Weisel as COO of Galaxy with an annual salary of $50,000, as well as hire Seth Weisel as Chief of Brewery Operations of Galaxy with an annual salary of $60,000. Both men would be employed for five years.
  • Assume accounting, marketing, sales, and human resources/payroll, as well as assume responsibility for payment of bills, invoices, and liabilities by Galaxy starting January 1, 2019.
  • Pay Pyramid Brokerage for work in connection to the agreement
  • Starting January 1, 2021, the Weisels would be entitled to buy back any interest in Galaxy given to the defendants "upon payment of the Defendant's capital contribution to Galaxy plus 10% and reasonable Attorney fees in connection with the transfer".

The suit also said AJEM would pay the Weisels $100,000, as well as assume all outstanding debt of GBC.

According to the plaintiff's lawsuit, the statements made by the Anzaroots "were false and untrue when made and were made intentionally, maliciously, tortiously and willfully and were made pursuant to a scheme and conspiracy among the Defendants when Defendants knew such statements were untrue and were made with wanton disregard of Plaintiff's property rights".

TRANSFER OF OWNERSHIP INTEREST IN GALAXY BREWING, GBC

The suit further stated that based on the Defendants actions, the Weisels agreed with AJ Conrad and Alan Anzaroot, giving them a 60% interest in Galaxy, to be made after Galaxy obtained various approvals to transfer the operation from 41 Court Street to the Titchener Building from the New York State Liquor Authority.

The Weisels also agreed with the defendants to transfer a 100% interest in GBC to AJEM starting January 1, 2019.

The following Fall, the state liquor authority approved the transfer of ownership to AJ Conrad. Once the defendants demanded the transfer in ownership, the plaintiffs claim the transfer in ownership was also based on the approval of the state for the "transfer of brewery operation and licenses from the premises at 41 Court Street in Binghamton to the Titchener Building.

Both parties also discussed the timeline for renovations at the Titchener site, as well as mortgage debt paid by the defendants, removing the plaintiff's responsibility to pay back loans, according to the suit.

Based on the statements, the plaintiffs agreed to the 60% stake in Galaxy to AJ Conrad and waived the requirement to transfer the brewery's operation and license to the Titchener Building.

BREACH OF CONTRACT

On page 8 of the lawsuit, the Weisels claimed they would not have entered agreements given the "false representations of the Defendants". The following claims are listed in the lawsuit:

  • Titchener Building has not been renovated.
  • Defendants have not provided money to finance new brewing equipment.
  • Defendants have failed to continue Weisels' employment agreements.
  • Defendants failed to provide accounting, marketing, sales, and human resources services.
  • Defendants have failed to assume responsibility for the payment of bills and invoices.
  • Defendants have failed to provide plaintiffs with statements of payments and expenses.

ANZAROOT CLAIMS COUNTER SUIT COMING

In response to the lawsuit, 12 News reached out to Isaac Anzaroot. Anzaroot told 12 News that the defendants will respond with their own lawsuit. He said they intended to help Galaxy with issues related to debt.

Complaint

Exhibit-1

Exhibit-2

Exhibit-3

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