November 19, 2009 | Story by: Leslie Huffman | Categories: News
Cary, NC — While some were surprised to learn of Impact Athletics sudden closing, others saw the signs months ago. In this, our preliminary report, we’ll tell you what we have learned from some digging this week.
UNPAID EMPLOYEES
Statements from employees confirm the business was struggling. Most employees were last paid October 5th and many of those checks were no good. That was the same time court documents from New Jersey show that Impact’s corporate parent, UW of North Carolina, LLC, filed for bankruptcy. The gym closed its doors on November 13th.
By August of 2009, employees were receiving checks that they were not able to cash. An employee told us that management was continuously changing pay periods, thus moving the actual payday. The last check that our source was given was October 5th, but she kept working in hopes that she would be compensated for her time. Other employees quit once they thought they would not be paid.
Employees reported that they began receiving checks written by an accountant in New Jersey. In November some instructors were being compensated with cash along with a pay-stub and voided check.
As paychecks and cash were being issued, employees stated that the usual health insurance costs continued to be deducted from their paychecks through November. When one employee called her insurance company to find out about her coverage, she was told that the benefits had been dropped by Impact Athletics back in July, 2009.
WHO OWNS THIS PLACE?
Court documents fail to identify the owners of Impact. Our colleagues in the mainstream media have not come up with the information. But CaryCitizen has discovered that the building and business was leased to Frank D’Alonzo of Long Island, NY in March of 2009.
Information about Mr. D’Alonzo is scarce, but the Pittsburgh Post-Gazette connected him to two ethics inquiries involving NCAA athletes at Pitt and Iowa State in the late 1980s.
Mr. D’Alonzo reportedly ran wellness gyms up and down the east coast for University Wellness, LLC. CaryCitizen has been unable to find any information on University Wellness Centers.
The building itself is still owned by a group of investors called Sport2Values. This development group includes local Cary residents Max Oaks, chief executive officer of Oaks Construction and Sam and Maureen Shriver, owners of Performance Impact Systems.
Mr. D’Alonzo traveled back and forth from New Jersey and New York to Cary. During his absence from the facility, V.P. of University Wellness Stephanie Campbell was the senior staffer on location. Mr. D’Alonzo was last seen by employees on location in Cary in September of this year.
PROMISES UNFULFILLED
Mr. D’Alonzo held a mandatory employee meeting last March to introduce himself and discuss his plans to expand the building and it’s offerings. Impact Athletics was to change it’s name to University Wellness and expand from 70,000 square feet to 100,000 square feet. The employees were told that the updated facility was to provide medical care, physical therapy and professional sports training as well as programs for children and teens all under one roof.
Mr. D’Alonzo also held a member reception in which he promoted the new plans and the new facility including large indoor and outdoor swimming pools. Although there were drawings and discussions of contractors and bids, none of these renovations materialized.
LEGACY MEMBERSHIPS
We spoke with several members who checked their statements from Impact and discovered that they were not billed at all for the last 3 months. The automatic withdrawal that they had signed showed no withdrawals from Impact since July.
Meanwhile, other members were being approached to purchase a “Legacy” Membership that required $1,000 up front for an 18 month membership. One member told us that when she inquired about her investment for the long term if the gym closed, she was told that her money would be held in a annuity bond for safe keeping. When she attempted to contact the number she was given for this annuity bond, no one answered the phone.
Once employees began leaving, members began asking questions. Staffers told many members that Impact was in negotiations with O2 Fitness to take over the facility. When we spoke with O2 Fitness’s corporate office, they admitted that they were approached by Mr. D’Alonzo, but turned him down.
(Editor’s Note: O2 Fitness has told CaryCitizen that they will be honoring all Impact memberships through the end of November.)
STILL DIGGING FOR ANSWERS
CaryCitizen’s calls to Bob Spence, a New York attorney representing University Wellness of North Carolina, LLC, have not been returned. Maureen Shriver, member of the Sport2Values investment group, could not be reached for comment. Attorney Richard Meth, on behalf of Sports2Values, LLC has filed a motion to move the proceedings from New Jersey to the Eastern District of North Carolina.
We spoke with the North Carolina Department of Insurance and they informed us that the Investigations Division has received several complaints already and an investigation is underway. If employees have more questions about their health benefits from Impact Athletics, they should contact the NCDI Consumer Services Department at 919-807-6750.
CaryCitizen will continue to dig for the facts in this story. If you have a personal tale about your experience at Impact, either as a member or employee, please contact Associate Editor Leslie Huffman.
19 Responses to Problems at Impact Went Deep
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Lindsey Chester
November 20, 2009 at 10:59 PM
Dig baby Dig!!!!!
David Valle
November 21, 2009 at 10:19 AM
I just wanted to tell people that this guy FrankD’Alonzo was a real scumbag! Ever since he came to Impact he projected with positive output but I saw right through him. He’s a fake.He yelled at all his employees. I hope you see this too Frank!!!! To all the members who became my friend, Im Sorry!
JandR Steiner
November 21, 2009 at 8:48 PM
My husband and I became members shortly after the cement foundation was poured for the current location. We bought our membership based on the shared vision we had seen through the eyes of the original management team; a place that promoted healthful lifestyles for the whole family. Being a part of the All Star Cheerleading program we’d witnessed the momentum the gym was gaining with competitive sports and agreed with the achievements/lessons being taught to our daughter from committed coaches and staff. Over the years, changes have happened, program goals changed, staff members have moved on, however through it all many of us were happy to be a part of the gym family. Over the past year, we were mislead that our gym would undergo many improvement and become even better. What we got instead was our gym home, the place we have belonged to for six years was taken away from all of us. Impact was far more than a fitness center; it was about energy, spirit, and camaraderie. Frank has taken away more than a building with equipment – he’s cheated the original vision on which the building was founded upon and a place where our gym family belonged.
W Coz
November 26, 2009 at 11:25 PM
Bob Spence appears to be complicit in this mismanagement. I would like to see him investigated by the NY Bar to determine whether his actions are ethical or whether he can be professionally fined and/or his practice limited in some way.
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mike
January 26, 2010 at 5:09 PM
Is this the same guy who left Tom’s river NJ school district sometime ago after numerous charges and suspicions of corruption?
Hal Goodtree
January 26, 2010 at 5:39 PM
Hadn’t heard that one, but Frank lives in Lavallette.
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Former Assistant to Frank
January 26, 2010 at 11:15 PM
Yes it is true, Frank was a bag of lies. He and Stephanie (why is she not being investigated too?) told lies to employees. I tried to inform employees of what was going on and insisted that they leave immediately because they are working for free. I tried to inform some employees what I was seeing and hearing in the office, but I don’t think they really believed it. It broke my heart seeing how many people were suffering from not getting paid. SHAME ON YOU FRANK and shame on Stephanie Campbell for allowing herself to be bought!!!
I have witnessed several questionable situations-it was all a lie. I left before the gym closed-knowing I may not receive my last pay check…and I did not. Seeing his mug shot is worth so much more than that last pay check! Hope he does time behind bars!!!
Hal Goodtree
January 27, 2010 at 12:02 AM
Good question about Stephanie. Why don’t you contact Leslie? She’s following this story for us and I’m sure she’d love to hear from you.
Bob
January 28, 2010 at 12:13 AM
Yes, it is the same D’ Alonzo that worked for Toms River schools in NJ. He was in charge of the technology department but was inept with computers. It was embarrassing to see him give a presentation. He was later moved to head athletic director which was a total nightmare for all who worked for and around him, He ruled with an arrogant demeanor who yelled and screamed and tried to intimidate everyone under him. Karma is a bitch and this was a long time coming.
Hal Goodtree
January 28, 2010 at 9:36 AM
Thanks for the info, Bob.
So how exactly does Mr. D’Alonzo end up with a tech job if his computer skills are Jurassic?
I mean, he must throw down a REALLY GREAT interview. Or is something else going on here?
P Mazzei
February 14, 2010 at 10:18 AM
I’m from NJ and I became aware of this story just yesterday 2/13/10 due to a relatively small article published by the Asbury Park Press in NJ. I was amazed to see that this D’Alonzo character has been involved with setting up an “all-ages” medical and “wellness” center at your gym facility in North Carolina because he was also allegedly a involved with establishing a similar “wellness center” in conjunction with the Toms River school system in Toms River, NJ, which was notorious for taking legitimate business away from the local private doctors. Allegedly involved in this scheme to establish a “wellness center” in the TR schools along with D’Alonzo was Toms River Schools superintendant Micheal Ritacco, who would appear to be living way beyond his means. This absolutely needs to be investigated by the attorney general in NJ as well because something definitely smells very fishy. Like me,most of the good, hard-working people of Toms River had no idea this same individual was involved in similar schemes outside of Toms River.
Hal Goodtree
February 14, 2010 at 11:34 AM
More on Frank and his rep in Tom’s River ~
http://www.nj.com/forums/tomsriver/index.ssf?artid=5633
Veritas
February 20, 2010 at 11:17 PM
Some of D’Alonzo’s supporters, along with his NJ attorney are blogging that the North Carolina charges were no more than “a big misunderstanding that’s already been cleared up with his former employees”. Any truth to that?
Terri
March 10, 2010 at 11:59 AM
Very disappointed that this has happened & we’ve lost such an awesome facility. I’d like to know if anyone has heard of any plans for someone to take over the building and run the facility again. I miss the convenience of the gym & pool! Thanks.
Terri
March 30, 2010 at 6:16 AM
I was at the Impact facility on 3/29/10 and looked in. There was a worker inside. They are painting the inside walls and replacing the carpet. I heard that O2 was taking it over. I couldn’t find any news of it online.
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