On January 31, 2023, the First Department issued a decision in Clingerman v. Ali, 2023 NY Slip Op. 00390, finding that a court had personal jurisdiction based on an alter ego theory, explaining:
Supreme Court properly found jurisdiction over defendants based on an alter ego theory. The court found that individual defendant Alisher Ali was subject to personal jurisdiction, and because Ali has not appealed from Supreme Court’s order, defendants cannot now be heard to dispute the issue of jurisdiction over Ali.
Further, the record supports plaintiff’s contention that defendants and Ali were alter egos and that jurisdiction over Ali can be attributed to defendants on that basis. Notably, Ali has not been an owner of defendants since January 25, 2013, the date that he purportedly sold those entities. Nevertheless, not only did he found defendants and extensively involved himself with their operations, but he also allegedly dominated and controlled them to such an extent, even after January 2013, that he may be considered an equitable owner. According to the allegations in the complaint, Ali withdrew substantial sums of money from defendants after January 2013. For example, Silk Road Finance paid more than $130,807 in rent for an apartment where his relatives lived, $23,915 in tuition for his children, and $25,000 to himself, under an alias, for credit card expenses.
(Internal citations omitted).