CLAYTON 鈥 An investor is suing the owners of the now-defunct O鈥橣allon Brewery, accusing the married couple of taking $122,000 in loans without intending to pay them back and spending more than $400,000 on personal expenses.
The lawsuit, filed by Forsythe Associates on Thursday afternoon, says James and Debbi Gorczyca secretly changed the terms of the loan agreements through bankruptcy court filings to skirt their responsibility to repay the funding, which was provided to maintain the company鈥檚 operations after filing for bankruptcy in 2023.
During the nine-month period in which Forsythe said they should have received repayment, the lawsuit says the couple instead spent more than $400,000, including paying off $48,000 in personal credit card bills, repaying a 鈥減urported鈥 $20,000 loan that James Gorczyca made to the company, and issuing $132,000 in paychecks to themselves and their daughter even after the brewery stopped operating.
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鈥淛ames and Debbie鈥檚 actions were egregious and intentional,鈥 Forsythe Associates wrote in its suit.
James Gorczyca did not return a call for comment.
O鈥橣allon Brewery quit operating in January 2024.
In discussing the brewery鈥檚 bankruptcy and closure, the lawsuit said O鈥橣allon Brewery had 鈥渂ecame increasingly financially distressed鈥 because of 鈥測ears of mismanagement.鈥
By April 30, 2023, the lawsuit said O鈥橣allon Brewery owned assets worth approximately $4.2 million and had liabilities of close to $11 million.
The company, known for its autumnal beers, filed for bankruptcy protection in the summer of 2023 as a result of pandemic-era economic challenges, according to James Gorczyca.
Gorczyca, who has owned the brewery since 2011, last year told the Post-Dispatch that the business wasn鈥檛 able to bounce back like he had hoped.
The couple鈥檚 bankruptcy attorney had an existing relationship with Forsythe Associates owner Harinder Singh, the lawsuit said. Forsythe Associates said the attorney knew the company was interested in buying a brewery and 鈥渂aited鈥 the funder with a potential sale of the brewery but the attorney鈥檚 鈥渇ocus shifted to borrowing money from Forsyth.鈥
Forsythe sued for an amount in excess of $25,000. The company鈥檚 lawyer, Matthew Vianello, did not return a call for comment.
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