William “Boots” Del Biaggio III filed for personal bankruptcy last week, listing $56.8 million owed to his 20 top creditors. A second bankruptcy filing, for his investment fund, lists debts of $10.6 million, according to a report in the San Jose Mercury News.
The bankruptcy filing comes a couple of weeks after Del Biaggio, co-founder of Sand Hill Capital, resigned from the Menlo Park, Calif.-based firm, which makes loans to venture-backed companies. Federal investigators and the Securities and Exchange Commission are investigating the San Jose investor.
Meanwhile, Biaggio is faced with at least two lawsuits that claim he committed fraud. One lawsuit claims Del Biaggio falsified documents to obtain a $3 million to help buy the Nashville Predators of the National Hockey League. Another lawsuit alleges further acts of fraud to secure a $4 million loan. The second suit was filed by Heritage Bank, which was co-founded in the mid-1990s by Del Biaggio and his father. —Alastair Goldfisher