NBA player files fraud suit against Phila. investment co.

An NBA player with Southeastern Pennsylvania roots has filed suit against a

Philadelphia-based company and two of its representatives, alleging he was defrauded when his capital investment wasn’t returned to him upon his exit from the company.

Kyle Lowry, who resides in Texas but has a home and relatives in suburban Philadelphia, claims in his lawsuit that Two Affix defrauded him out his investment in the company.

Lowry, who plays professional basketball for the Houston Rockets, first met Christine Krzyzanowski, a senior partner and chief marketing officer for Two Affix, back in May 2010 during a social gathering in Philadelphia, the suit states.

Lowry was introduced to Eric B. Parker, also a senior Two Affix partner and the company’s chief technology officer, later that summer.

Between July and September 2010, the two defendants repeatedly attempted to persuade Lowry to become a member of, and invest in, Two Affix, the suit states.

In late September of that year, Lowry decided to invest $100,000 in Two Affix, and in exchange for his investment Lowry received a membership interest of 12 percent in the company.

Nearly two years later, in mid May of this year, Lowry and other investors received an email from a lawyer for Two Affix requesting that the members meet to discuss the possibility of members withdrawing from the company and what the subsequent steps would be to do so, according to the complaint.

Another email followed days after the first in which the members were asked to indicate whether or not they wished to remain members of the company.

Then, on May 21, another email was sent out by counsel for the company that said any member who did not respond would be presumed to want out of the company, in which case papers would be drawn and capital contributions would be refunded, the suit states.

The following day, Lowry responded by saying he no longer wanted to be a partner in Two Affix, and that he sought to have his money refunded.

On June 18, the company’s lawyer sent Lowry a message alleging that the plaintiff had been devoting his “time, energy, resources and efforts towards the creation and promotion of a new competing business and/or product,” and also alleging that Lowry had been working with at least one former Two Affix employee who was under a no-compete clause.

The letter claimed that Lowry was in violation of his fiduciary duties to Two Affix, the suit states.

The June 18 email made no mention of any refund and demanded that Lowry sign an attached release or be subject to further litigation.

“Contrary to the allegations contained in the June 18, 2012, Email, and because there was no operating agreement in existence for Two Affix – which was admitted in the May 18, 2012 Email – Mr. Lowry could not have been in breach of any fiduciary obligation of Two Affix members, and is therefore entitled to a complete refund of his capital contribution,” the lawsuit states. “Upon information and belief, Defendants have squandered Plaintiff’s capital contribution and mismanaged the resources of the Company, and their refusal to refund money to Mr. Lowry, in a direct contravention of any express written agreement among the parties, is an effort to hide that misfeasance.”

The complaint contains counts of fraud, conversion, breach of contract, accounting, civil conspiracy, and unjust enrichment/constructive trust.

The suit also accuses the defendants of violating the New Jersey Racketeer Influenced and Corrupt Organizations Act, alleging that the defendants conspired to wrongfully and improperly misappropriate, transfer or divert funds that were intended for plaintiff to themselves or third parties for the defendants’ gain.

Defendant Parker resides in New Jersey. Defendant Krzyzanowski lives in Huntingdon Valley, Pa., which is just outside of Philadelphia.

Lowry seeks judgment in excess of $50,000, plus attorney’s fees, interest, litigation costs and other court relief.

The lawsuit was filed July 27 at Philadelphia’s Common Pleas Court by Philadelphia attorneys Inez M. Markovich and Christian C. Mattioli, of the firm Deeb Blum Murphy Frishberg & Markovich.

 

The case ID number is 120703691.