From the Times Union on July 5th:
Lawyers involved in the federal bankruptcy cases involving embattled Albany financier Kris Roglieri and his now-defunct commercial lending firm Prime Capital Ventures may have reached a financial settlement to pay off creditors.
Terms of the negotiations are not yet available but an attorney involved in the case recently notified Bankruptcy Court judge Robert E. Littlefield Jr. that those involved in the matter have agreements to resolve Roglieri’s bankruptcy and the bankruptcy of his firm.
“We are pleased to report that Mr. (Paul) Levine as permanent receiver of the debtor and Christian H. Dribusch as Chapter 7 trustee of the estate of Kris Roglieri, have been able to craft a term sheet for a path forward which, in (Levine and Dribusch’s) view, is the best way to maximize the recovery to creditors in both cases,” attorney Stephen Donato, an attorney for Prime Capital Ventures, wrote in a letter to the judge. “It is anticipated that a motion for approval of the term sheet will be filed shortly.”
The disintegration of Roglieri’s company prompted his creditors to file lawsuits over the last year alleging he stole millions of dollars for loans they never received. In May, Roglieri was arrested by the FBI and charged with one count of wire fraud in connection with the company. Before it was shut down, Prime Capital Ventures offered up large, interest-only commercial lines of credit in exchange for large cash deposits of roughly 20 percent of the loan.
Federal prosecutors handling the case against Roglieri have so far pursued just a single count of wire fraud, but it is alleged in both the criminal complaint and previously filed lawsuits that Roglieri took the cash deposits and spent them on luxury cars, watches and artwork.
FBI raided his Queensbury home over the winter as part of the criminal investigation to seize a dozen cars, But Roglieri’s estate has millions of dollars in assets that include other cars, antiques and collectible watches. Much of Roglieri’s debts are tied up in tax and legal bills.
