Exotic Car Auction Firm Faces Lawsuit Over Allegations of Fraudulent Schemes

PCARMARKET Founder Alleges Corporate Fraud in Legal Battle

In a shocking turn of events, Ian Darcy, the founder of the online auction platform PCARMARKET, has initiated legal proceedings against the firm’s CEO and COO, claiming they engaged in serious misconduct, including forgery and financial mismanagement. The lawsuit, officially lodged in the New York Supreme Court in Dutchess County, reveals a troubling narrative of alleged deception that could have significant ramifications for the company and its stakeholders.

The Heart of the Matter

Having founded PCARMARKET in 2023, Darcy poured significant personal capital into the platform, which specializes in the auction of exotic cars, particularly high-end brands like Porsches and Ferraris, in addition to luxury memorabilia. As the company grew, Darcy entrusted the CEO and COO, Ethan Vallarino and his partner respectively, with substantial access to the business. However, this trust has spiraled into what Darcy’s lawyers are calling a “corporate heist.”

According to the claims made in the lawsuit, the defendants allegedly forged an operational agreement that removed Darcy's overwhelming 97% ownership stake in the company. Darcy maintains that he did not sign the agreement, nor was he aware of its existence. His legal counsel argues that the agreement is inherently void, as any transfer of ownership required unanimous consent, which was never obtained from Darcy’s long-time attorney.

Disturbing Financial Records

The filings also draw attention to peculiar financial dealings involving a substantial invoice from the law firm Foley Lardner LLP, which charged Darcy over $11,000 for legal services related to his potential termination. The items listed in the invoice included research on terminating Darcy's position and strategies to diminish his ownership, all while he was still actively managing the company. Furthermore, he only learned about his supposed termination well after these services were rendered.

The timeline is especially suspect; although billing occurred in August for legal services, Darcy was not dismissed until October, right after an event that allegedly triggered the decision to let him go. This raises questions about the motivation behind the lawsuit’s timing and whether it was a premeditated effort to alter control of the company.

Months of Evasion

From December 2024 until his termination in October 2025, Darcy repeatedly sought clarification on the capitalization table—a key document that outlines the ownership structure of the company. The defendants reportedly evaded these inquiries, claiming the table was still under development. However, Darcy's lawsuit suggests that the table was already manipulated without his consent.

Following his termination, Darcy was restricted from accessing any company systems, and it’s alleged that the defendants rerouted approximately $2.6 million in revenues into private accounts, incurring $1.6 million in unauthorized debts in the process, with some funds allegedly earmarked for personal loans.

Legal Intentions

In light of these allegations, Darcy is seeking to nullify the December agreement, restore his original 97% ownership stake, and establish a constructive trust over company funds, which he claims were improperly diverted. The lawsuit further aims to recover compensatory and punitive damages for the multiple charges of fraud and breach of fiduciary duty.

As of now, the defendants have yet to formally respond to the allegations. The law firm referenced in the complaint, Foley Lardner LLP, also has not commented on the matter. While the suit remains to be proven in court, it signals a critical moment for PCARMARKET, as the outcome could alter the company’s future and impact its operations within the luxury car auction market.

The intricacies of this unfolding corporate saga highlight the vulnerabilities that can exist within startups, particularly in the high-stakes arena of exotic car auctions. As the judicial process continues, stakeholders will undoubtedly be watching eagerly to see how this lawsuit unfolds and what it means for the future of PCARMARKET.