Fireworks Extravaganza of Walden is demanding up to $7 million from a former employee who allegedly told the government that the fireworks company illegally imported explosives from China.
Fireworks accused Brian Hollenback of Parkville, Maryland, of defamation in a complaint filed Jan. 26 in U.S. District Court, White Plains.
Hollenback began working for the company in 2014 as an office administrator, according to the complaint, and worked his way up to sales, permit director and event coordinator. He resigned last June 4.
Fireworks is owned by John Sagaria through its parent company, J&J Computing Inc.
Hollenback allegedly told at least 8 employees last May or June that they should stop working for Fireworks because it was illegally importing explosives.
Then last November Hollenback posted a Facebook message, according to the complaint, stating that Sagaria was “knowingly ”“ illegally &/or improperly importing 1.3g Explosives (Fireworks) into the New York port in the United States from Lidu Fireworks in China.”
The message goes on to say, “I reported this to the federal authorities ”“ yet this man is still in your back yard America ruining an Honest, Hard working mans life.”
The Facebook posting was allegedly directed to news organizations such as ABC News; government officials such as the governor of Maryland; government agencies such as the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and Pyrotechnics Guild International.
Fireworks claims the statements are false and were made to sabotage the business.
The company also accuses Hollenback of providing trade secrets to competitors and taking electronic equipment worth $12,287.
Fireworks charged Hollenback with defamation, misappropriation of trade secrets and conversion.
This is not Sagaria”™s first defamation case. In 2019, Vincent Esposito and July 4 Ever Co., Newburgh, accused Fireworks and Sagaria”™s Information Technology Corp., of Paramus, New Jersey, of stealing its website and diverting customers.
Sagaria filed counterclaims accusing July 4 Ever and Esposito of defamation, breach of contract and tortious interference. The dispute is pending, in White Plains federal court.
New City attorney Adam K. Kurland represents Fireworks Extravaganza in both lawsuits.
