Kris Roglieri Alleged to Have Transferred Assets to Third Parties

The Chapter 7 Trustee managing the personal bankruptcy of Kris Roglieri brought new information to light on Thursday by alleging that Roglieri lied heavily in his original bankruptcy petition. In addition to hiding assets, income, expenses, debts, gifts, and records from the bankruptcy process in part by running them through many business entities he owned, he also moved funds from his personal account into his Commercial Capital Training Group, LLC (CCTG) bank account just weeks before filing for personal Chapter 11 bankruptcy back in February. From there, assets from CCTG and assets from the National Alliance of Commercial Loan Brokers, LLC (NACLB), another business he owned, were transferred to third parties to be preserved as safekeeping for Roglieri’s own benefit.

“[Roglieri] thereafter transferred the assets including without limitation operations, funds, good will, client lists, and other personal property of Commercial Capital Training Group, LLC and the National Alliance of Commercial Loan Brokers, LLC to third parties,” the Trustee wrote. “[Roglieri] facilitated the transfer of assets from the Debtor Entities to dissipate the value of the Debtor membership interest in the Debtor Entities as a potential source of payment to creditors of the Debtor bankruptcy estate.”

On May 15, deBanked reported that the NACLB Conference had changed its name to Commercial Loan Broker Association (CLBA).

“The third parties are preserving the value of the transferred assets for the benefit of the Debtor,” the Trustee wrote. Assets belonging to the Roglieri estate were to have been turned over to the Trustee but were not.

Roglieri allegedly “facilitated the transfer of assets, including operations, funds, goodwill, client lists, and other personal property of Prime Commercial Lending, LLC to third parties” as well.

The Trustee has asked the Court to deny Roglieri a discharge of his bankruptcy. The full complaint can be viewed here.

Kris Roglieri Arrested for Wire Fraud, in Jail

Update: Roglieri to stay in prison indefinitely while awaiting trial after shocking revelations.

Kris Roglieri has been arrested by the FBI for wire fraud. He is currently in jail pending a June 3 hearing. The sealed criminal complaint was unsealed on Friday May 31 after months of news headlines and civil court proceedings revealed that his commercial lending business may have actually been operating as a fraudulent ponzi scheme. More than $100 million of customer funds are alleged to have gone missing. Roglieri himself is in personal Chapter 7 bankruptcy.

The criminal complaint focuses on just one alleged crime, however, wire fraud for how Roglieri dealt with a client named 1800 Park Avenue LLC. As part of that, Roglieri committed to fund a $98.9M line of credit to 1800 Park in exchange for a $5M upfront interest payment that would purportedly be held in trust. Roglieri is then alleged to have misappropriated all the funds for his own personal use.

Among all the former clients of Roglieri claiming they were victims of fraud, 1800 Park was one of the last to enter the picture. 1800 Park didn’t file its civil suit until April 3, months after several others, where it not only named Roglieri and his companies Prime Commercial Lending, LLC and Prime Capital Ventures, LLC as co-defendants but also three of Roglieri’s employees. Roglieri was the only person named in the criminal complaint, however.

Although Roglieri had represented in his Chapter 11 bankruptcy (now converted to Chapter 7) that his businesses had stopped operating, one of those businesses (NACLB) has publicly represented that it had merely rebranded to a new name, and it is still soliciting payments from potential customers under that name.

Update on the Kris Roglieri Saga

The trustee overseeing Kris Roglieri’s Chapter 11 bankruptcy case asked the Court on Tuesday to convert it to a Chapter 7. That’s because among the facts to come out of that and related proceedings thus far is that Roglieri did not ever maintain financial records for his various business entities, has no revenue coming in, and has no path to keeping his businesses going. The trustee also noted the added complexity of an FBI investigation and that the Receiver in a related civil case believes Roglieri owes creditors more than $100 million, funds that were allegedly derived from a ponzi scheme.

A Chapter 7 is a liquidation. The Court still has to approve it. A Chapter 7 trustee would have added powers that allows them to pursue assets for the benefit of creditors. The assets would be sold off.

Up until at least one month ago, Roglieri’s wholly owned business, the National Alliance of Commercial Loan Brokers conference (NACLB), was still soliciting for sponsorships. However, the ability to purchase tickets was shut off in early April and as of last week the conference website has gone completely offline. Roglieri previously attested that $436,237 was outstanding and due to Caesars Entertainment in Las Vegas for their 2023 conference. The Receiver in the Prime Capital Ventures case has also argued that the NACLB bank account had been the recipient of at least $20,000 in allegedly misappropriated funds and that $200,000 had been withdrawn from the NACLB’s bank account to aid in the present legal defense of Roglieri.