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Chamberlain, development corp sue businessman for $200,000

CHAMBERLAIN — The city of Chamberlain and the Lake Francis Case Development Corp. are each suing a Wyoming company for breaching loan commitments.

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The two entities claim Arthur B. Alphin, who established A-Square of South Dakota LLC in Chamberlain in 2007, owes loan amounts of nearly $150,000 to the city and $50,000 to the development corporation. The litigation alleges Alphin failed to make any payments on either loan and therefore breached contracts.

The company manufactures and sells rifles and ammunition. Alphin had established an ammunition plant in Chamberlain, but according to the lawsuits, he never started up business operations. Court documents state Alphin sold his South Dakota business to a Montana company in 2010 that was later acquired by Broadsword Group LLC, of Wyoming. The building was vacated in December 2011.

Alphin entered into an agreement with the development corporation in December 2007 and borrowed $50,000 to purchase a cupping press to make ammunition. Alphin entered into an agreement with the city of Chamberlain in January 2009 and borrowed $150,000 to start the ammunition business, which included purchasing two draw presses to make ammunition. Part of that agreement was to hire no less than 11 full-time employees within the first three years and retain no less than 24 full-time employees after the fifth anniversary date.

If Alphin had followed these terms, the city would have forgiven the loan, per the agreement. Instead, he didn’t hire anyone, the city claims.

The city took possession of one of the two draw presses and sold it at auction for a net recovery of $3,664.32.

The city is asking for $146,335.68. Lake Francis Case Development Corp. is asking for $50,000.

In an answer to each lawsuit, Alphin denied all claims against him except that he is a resident of Wyoming and may be served at his Wyoming address.

In turn, Alphin is also suing the company to which he sold his ammunition production business. Alphin requests, if he is found to be indebted to the city of Chamberlain and the development corporation, that Broadsword be responsible for paying the money.