A dispute over an alleged breach of a settlement agreement following claims of fraudulent precious metal coin sales has led to new legal action seeking $1.6 million in damages, with the plaintiff arguing that the company’s principal should be held personally responsible for the debt. The complaint was filed by Stephen E. Mauch in the United States District Court for the Eastern District of New York on May 12, 2026, naming Austin Lloyd, Inc., described as a defunct New York corporation, and Jenson Adoni, identified as its director and shareholder, as defendants.
According to court documents, Mauch is a farmer from Mooreton, North Dakota who alleges he was targeted by telemarketing agents representing Austin Lloyd beginning in January 2021. The agents offered Silver American Eagle bullion coins at purported discount prices through repeated calls. By December 15, 2021, Mauch had purchased coins totaling $1,849,300 from Austin Lloyd but claims their actual fair market value was only $253,883.80. The filing states that "Austin Lloyd and the Austin Lloyd principals and telemarketers had swindled and defrauded Mauch out of $1,595,416.20 of his life savings."
In July 2022, Mauch initiated a lawsuit (referred to as 'Mauch I') against Austin Lloyd and other individuals in federal court alleging violations including federal Civil RICO mail and wire fraud statutes; conspiracy to commit mail and wire fraud; common law fraud; negligent misrepresentation; and violations of New York General Business Law section 349. This initial suit resulted in an October 2022 settlement agreement where Austin Lloyd agreed to pay Mauch $950,000 through a series of scheduled payments: an initial payment of $200,000 followed by additional payments over eighteen months.
The complaint asserts that Austin Lloyd defaulted on these payments multiple times despite receiving fourteen notices of default between December 2022 and May 2024. According to the terms cited from the settlement agreement: “upon the Settling Parties’ default on any of the scheduled payments and if ‘after ten (10) days following service [by Mauch of a] default notice, the default is not cured,’” then “the total amount demanded ($1,600,000) (‘Demand Amount’) shall be due and owing to Mauch,” with interest accruing at nine percent per annum from October 17, 2022.
Mauch argues that because Austin Lloyd is now defunct but never formally dissolved under New York law—and did not provide notice or account for assets to creditors—its directors or shareholders can be held personally liable for outstanding debts under sections 1006-1007 of New York Business Corporation Law. The complaint outlines Adoni’s role as a director and manager with significant operational control over financial accounts during all relevant periods. It references admissions made by Adoni in other lawsuits regarding his partnership status in Austin Lloyd and oversight responsibilities over merchant accounts critical to business operations.
Further details provided allege that after litigation began arising from dissatisfied customers—including chargebacks—Adoni recognized his personal exposure due to guarantees on merchant accounts linked to coin sales activities described as fraudulent by plaintiffs in various suits. The document also notes that distributions continued being made from company accounts even after legal actions commenced.
Mauch seeks several forms of relief: (1) judgment awarding him $1.6 million against both Austin Lloyd and Adoni jointly for breach of contract; (2) declaratory judgment allowing direct recovery from Adoni due to alleged futility or impossibility of collecting from the corporate entity; (3) prejudgment interest at nine percent per year since October 17, 2022; post-judgment interest at statutory rates; reasonable attorneys’ fees; litigation expenses; costs; and any further relief deemed appropriate by the court.
The case is being handled by attorneys Kenneth G. Walsh (Law Office of Kenneth G. Walsh) based in Thornwood, New York and R. Lyn Stevens (Stevens Law Firm), with Stevens appearing pro hac vice pending approval. The matter is filed under Case No. 2:26-cv-02805-NJC-JMW.
Source: 226cv02805_Mauch_v_Austin_Lloyd_Inc_Complaint_Eastern_District_New_York.pdf