Historic Appalachian Cinema Owner Files Chapter 7 Bankruptcy
The Appalachian Cinema in Boone, North Carolina, opened in 1938, was gutted by a fire in 1950 and closed in November 2007 when it was operated by Carmike Cinemas.The historic movie-house was purchased in 2008 by embattled entrepreneur and now former owner, Frank Mongelluzzi. Although Mongelluzzi had promised to renovate the celebrated cinema, he has recently filed for Chapter 7 bankruptcy protection. The Appalachian Cinema is valued at $578,300 in its tax listing; its future should be decided sometime this summer.Jess McNeil, a theater consultant hired to discover the building’s history, related how he and his team had spent a year researching the premises, finding such relics as color lithographs of the period and “war bonds” signs. Although frustrated by the abrupt cessation of activity and the closing of the building, McNeil, at least, was able to cash his paycheck, which some of his team was unable to do.According to an article on www2.wataugademocrat.com by Lauren K. Ohnesorge, Mongelluzzi has also abruptly sold his Florida business, Able Body, without paying some of the employees. Allegedly, investigators said that, after filing for Chapter 7 bankruptcy, Mongelluzzi and his wife Anne “attempted to defraud their creditors further by hiding assets, shredding documents and telling the employees of their 100-plus businesses to not cooperate with the court”.The attorney representing the Chapter 7 bankruptcy trustees related how the would-be entrepreneur created companies with such strange names as Cecil B. DeBoone, LLC, the company that purchased Appalachian Cinema in 2008. Frank and Anne Mongelluzzi are listed as its sole shareholders. Other corporations in North Carolina owned by Mongelluzzi include Blowing Rock Renovators, Appalachia Labor Force and Pssghetti’s Inc. He also had over one hundred other corporate identities, including Captain Terrific, LLC; Organized Confusion and O Wilbur, LLC.Some of these businesses appear to be legitimate, such as Pssghetti’s Inc., with restaurants in North Carolina and Florida. Others, such as Cecil B. DeBoone, appeared to be a business in name only. There are allegations of repeated attempts by the couple to hide such assets as bank accounts and luxury cars, making this anything but a run-of-the-mill bankruptcy case.The husband and wife duo own well over 70 separate properties across the U.S., all of which will be for sale. They currently have over $60 million in debt as well as millions of dollars more to the government for unpaid taxes, according to court records.For information on the mechanisms of filing Chapter 7 or Chapter 13 personal bankruptcy, please go to www.legalhelpers.com or call 800-260-1402 to arrange your initial free consultation with an experienced and knowledgeable bankruptcy attorney from Legal Helpers. We have 100 offices across the country and are familiar with the local bankruptcy statutes.
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