Former 1st Alliance executive John DiIorio won a key legal battle when the federal case against his company was dismissed last year but he still wants to demonstrate that bad faith assertions led to the charges.

Connecticut alleged licensing infractions in a case later escalated to the Consumer Financial Protection Bureau. Although that case was ultimately dismissed in 2025, DiIorio said it led to the shutdown of two companies and required him to battle individual charges in the interim.

His most recent actions are against Washington state. He asserts omissions from documents Washington was under legal obligation to produce muddied the record as 1st Alliance worked to prove other states did not share Connecticut's view that the company was noncompliant.

"I believe these records evidence a coordinated effort to mislead a federal regulator, and contain significant exculpatory evidence that might have, or have had, an impact in other non-public-records-related civil litigation," DiIorio said in a legal declaration. 

Washington State's Department of Financial Institutions had not immediately responded to a request for comment at press time.

Missing emails?

The latest declaration, which DiIorio said he filed in Washington's Superior Court in late July, asserts that the state redacted a 2019 email from an examiner who recommended "licensing and churning findings be removed" in line with a multistate examination looking into the matter.

The former 1st Alliance executive said that he is aware of the email's contents because he obtained it from his attorney through a subpoena in another case. 

That email includes a follow up in which the examiner agrees to send the report with "the findings you want" to the head financial examiner for Washington State, according to DiIorio's declaration.

The declaration also asserts that Washington withheld a 2021 email sent to representatives of that state and other individuals which is said to show officials took action to suppress the information about the concurrent exam findings that there were no licensing or churning issues.

DiIorio said he was aware of the 2021 email as a result of a Freedom of Information Act response from another state.

A hearing on the issue is scheduled for later this month, according to the declaration.