Purchase-based TriCap Technology sues Eli Global for $5M on shell company claim

TriCap Technology Group LLC of Purchase claims that a customer, Eli Global LLC, used a shell company to gain access to its software and to dodge paying for it. On Sept. 20, TriCap Technology sued Eli Global in Westchester Supreme Court and demanded $5 million.

Eli Global allegedly used a subsidiary, Arrevio LLC, to gain use of the software and training without the burden “of having to compensate TriCap,” according to the lawsuit.

Eli Global did not respond to an email message requesting comment.

TriCap Technology”™s ARxChange software ”“ accounts receivable exchange platform ”“ sorts, ranks and scores debt portfolios according to how likely they can be collected.

Its principal place of business, according to the complaint, is a house in Purchase that property records indicate as the home of Joseph E. LaManna, who co-founded Tri-Cap with James A. Zadoorian.

Eli Global is based in Durham, North Carolina. It bills itself as a conglomeration of more than 70 businesses across 15 industries that generate more than $1.4 billion in revenue.

TriCap and Eli Global began discussing a licensing deal in 2017. As they were finalizing the terms, according to the complaint, Eli Global senior executive Daphne Hulsey said they had to use Arrevio as the client.

The deal gave Arrevio the right to license and resell the ARxChange software under its own label, for $10,000 a month.

But Arrevio, TriCap claims, was a shell company controlled by Eli Global, with no independent business, management or assets. It is “judgment proof,” the complaint states, and has “refused to compensate TriCap according to the terms of the agreement.”

TriCap took Arrevio to arbitration and last year it won a $231,516 award for actual damages, attorney fees and costs. Westchester Supreme Court Justice John P. Colangelo confirmed the award May 6.

But Arrevio is insolvent, according to the complaint, and all attempts to collect have been unsuccessful.

TriCap holds Eli Global responsible, as Arrevio”™s alleged alter ego. The debt collection software company is demanding that Eli Global pay Arrevio”™s judgment and another $5 million for punitive damages and costs.

TriCap is represented by White Plains attorneys Lawrence A. Garvey and Brittany C. Patane.