Legal Question in Business Law in New York

Based on the information you've provided it would seem that the agency has no valid claim against you, but may have a claim against its models. That having been said you could still come out the loser, because defending the claim if they actually sue will probably be expensive. Then again, it will be expensive for them to sue... so whether they actually will is something that's hard to predict.

As a pure legal matter, I agree with counselor Browde. The operative rights at play are copyright and the right of publicity (essentially the right of one to control's one own image). You likely own the copyright in the photos while the models, and by extension, the agency control the right of publicity. By removing any trace of the actual model's identity that may steer you clear of a successful claim by them.