Kris Roglieri, the Albany-based loan broker, is at the center of a high-stakes legal drama. Facing multiple lawsuits from clients who claim losses amounting to over $100 million, Roglieri's bankruptcy case has now escalated to a Chapter 7 liquidation. This shift may pave the way for the sale of his assets to repay creditors.
Conversion to Chapter 7 Liquidation
This week, the bankruptcy court approved converting Roglieri’s case from Chapter 11 to Chapter 7, per a report from the Times Union. This decision significantly impacts the proceedings, as Chapter 7 involves liquidating assets to pay off debts, contrasting with Chapter 11’s reorganization approach.
The court-appointed trustee is already taking steps to access Roglieri’s mansion in Queensbury. This property, along with other personal and business assets, will likely be sold to satisfy creditors' claims.
Fraud Allegations and Civil Lawsuits
As we have written previously, Roglieri, CEO of Prime Capital Ventures, sought Chapter 11 protection in February to shield himself and his companies from numerous fraud lawsuits. The suits allege Roglieri promised large, interest-only commercial lines of credit to real estate developers and tech startups. Clients were required to provide a cash deposit of 20% of the loan amount, purportedly for collateral and interest payments. However, many plaintiffs claim in subsequent lawsuits the loans never materialized and Roglieri failed to return their deposits, which sometimes totaled tens of millions of dollars.
Roglieri blames hedge fund Berone Capital Fund for the problems even though the problems began at the beginning of 2023 and Prime Capital kept on doing the same type of deals after that. The lawsuits piled up as the money never materialized for each of the transactions.
A receiver appointed in the civil cases discovered that Roglieri allegedly diverted client deposits to fund a lavish lifestyle, purchasing exotic cars, expensive watches, and charter jet services.
FBI Involvement
The FBI has raided Roglieri’s Queensbury home twice, seizing a sports car collection valued at millions of dollars. While the FBI has not commented on the ongoing investigation, court documents reveal a federal criminal probe into Roglieri’s loan business.
Roglieri's bankruptcy attorney, Joseph Barsalona II, recently sought to withdraw from the case, citing irreconcilable differences and a communication breakdown. Barsalona’s filing also highlighted allegations that Roglieri used client deposit money to pay his retainer fee. The conversion to Chapter 7 was pushed by Roglieri’s ex-clients, who demanded this shift amid the mounting accusations.
Financial Obligations
Roglieri is facing substantial financial liabilities, including millions in unpaid legal fees, conference booking fees for an annual Las Vegas event for loan brokers, and outstanding tax bills.
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