MANCHESTER – Manchester police recently completed an investigation into possible fraud by one of the drummers of Recycled Percussion, the Goffstown band which this week became a finalist in NBC's "America's Got Talent." Justin Spencer, one of the band's drummers and its founder, was the target of the probe, Manchester police Lt. Nick Willard said yesterday.

The result of the investigation was forwarded to the Hillsborough County Attorney's Office for possible prosecution, he said.

County Attorney Marguerite L. Wageling confirmed Manchester police were asked to investigate a matter involving Spencer and Alexandria Thompson. Thompson is Spencer's business partner who filed a civil complaint against Spencer alleging he siphoned money from the band's account.

"We have been asked to consult and review," Wageling said. "We are doing so. So I don't want it to be suggested that either one of them are being accused of a crime."

Frank B. Mesmer, Spencer's attorney, said the allegations are bogus, and originated from Thompson, a disgruntled stockholder in the company.

"It appears that Alex is making an effort to torpedo the band's attempt, or their effort, to try to win in the finals of the TV show," Mesmer said last night.

Spencer also denied the allegations.

"We haven't heard from her (Thompson) in a year and half as a business partner at all," he said. "And now that we're on 'America's Got Talent' about to win, there's a whole embezzlement story."

Trouble in 2006

But Thompson's attorney, Tracy Bernson, said it was Spencer's counter-claims that did not hold water.

"Alex is a good person. She's trying to do right by the company and the band that she believed in ... We're hoping and we're putting our faith in the fact that the court is going to take the appropriate actions," Bernson said.

The allegations against Spencer were brought to Manchester police this year and investigated by Detective Martin Swirko, who specializes in fraud investigations.

Spencer was the only member of the band to be investigated, Willard said.

Manchester police conducted the probe because the band, which operates under the business name Shelter Management Inc., is officially based in the city.

Spencer founded Recycled Percussion in 1995, having launched the band at a talent show at Goffstown High School. He teamed up with Thompson in 2005. Shelter Management was incorporated in New Hampshire in 2006, with Spencer and Thompson as equal stockholders for owning, managing and producing the band.

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Court documents show the management trouble originated in 2006, when the two had conflicting opinions for direction of the band. A tour bus breakdown in Florida of that year led to various counter claims of mismanagement and misappropriation of funds and assets, and the repossession of a second tour bus.

Despite the alleged managerial meltdown, Thompson presided as justice of the peace at Spencer's wedding in January 2007, court papers said.

Justin Spencer of Recycled Percussion

In June 2007, Thompson sued Spencer, accusing him of diverting corporate funds. They reached a settlement agreement in October 2007.

Civil complaint

The most recent allegations against Spencer arose in January of this year when Thompson filed a civil complaint in Hillsborough County Superior Court alleging Spencer violated the terms of the settlement agreement. She alleged that he created a separate bank account to which he alone had access, according to court documents.

Thompson alleged Spencer diverted money into his account from Shelter Management Inc.'s account, court documents reveal.

TMZ.com reported yesterday that Spencer allegedly embezzled nearly $200,000 from the account of the company that manages Recycled Percussion.

"It's a completely blown out of proportion, fabricated story," Spencer said. "There is no criminal investigation for the embezzling of $200,000, at all. It's ludicrous."

Berson, Thompson's lawyer, said her client had nothing to do with the story.

"I am aware of the report on TMZ. I don't know what their sources of information are. I can assure that those sources of information are not my client Alexandria Thompson," she said.

In this past January's complaint, Thompson petitioned for ex parte attachment of a total of $150,000 against Spencer, including funds he had access to in accounts at St. Mary's Bank and Bank of America.

Later that month, Spencer filed a counter-petition in Hillsborough County Superior Court that alleged, in part, that Thompson misappropriated funds and assets, interfered with prospective business, and committed unfair and deceptive business practices.

A 'campaign of harm'

Spencer accuses Thompson of waging a "campaign of harm," as his latest court filing in Manchester puts it.

In an e-mail linking to the TMZ story, the New Hampshire Union Leader also received a photograph that purported to show Spencer and another band member, Ryan Vezina, in possession of marijuana. Spencer called the drug rumors a "hoax."

"Anybody that knows me knows that I'm anti-substance. I have it tattooed to my chest," Spencer, who has a tattoo of the letter 'S' crossed out in red ink on his chest, said.

"This is a common occurrence. It happens to 'American Idol' contestants constantly," Spencer added about the accusations.

Mesmer said their next court hearing is in Hillsborough County Superior Court on Dec. 21, at which time he said they hope to complete a "corporate divorce."

An NBC spokeswoman said the network had no comment. In Los Angeles, the band continued to prepare for Monday's final round of the talent competition, Spencer said.

"It's awesome. We've got a performance set up for Monday that's going to unbelievable," he said.