Businessman who swindled millions files for bankruptcy: massive debts and asset liquidation
Less than a year after his release from prison, the former owner of a New York insurance agency has filed for bankruptcy. Among the creditors are defrauded insurance companies, tax authorities, and banks.
Ronald Rauschenbach, convicted of embezzling millions of dollars from insurance companies, has turned to federal court in an attempt to discharge debts totaling approximately 4.6 million dollars. Among the creditors are the defrauded insurance companies, tax authorities, and credit card issuers. A key question remains: will the house adjacent to Donald Trump's golf course be put up for sale?
Less than a year after his release from prison for serious embezzlement offenses, 58-year-old Ronald J. Rauschenbach of New York is seeking to wipe out his massive debts through insolvency proceedings.
Rauschenbach, former owner of the Castle Title Insurance Agency, was sentenced about two years ago to 21 months in prison for embezzling over 1.6 million dollars from property insurance firms. As part of his scheme, he pocketed funds from real estate transactions intended for tax and fee payments. He served 13 months and was released in October 2025.
In a Chapter 7 liquidation petition filed on August 31 with the federal court in the Poughkeepsie district, Rauschenbach reported assets valued at only 388,001 dollars against debts of about 4.6 million dollars.
His primary asset is a half-interest in a luxury private home adjacent to Donald Trump's National Golf Club, valued at 375,001 dollars. Other assets include an older vehicle, jewelry, furniture, and a checking account worth about 13,000 dollars, though he claims most of his assets are exempt from liquidation.
The breakdown of his debts lists approximately 1.9 million dollars owed to defrauded insurance companies, 1.65 million dollars in court-ordered punitive damages, over 220,000 dollars in federal and state tax arrears, and various mortgage and credit card debts. Documents indicate he is currently employed as a commercial underwriter at a Manhattan finance firm, having earned about 66,800 dollars year-to-date. A court-appointed trustee will now evaluate the liquidation of his assets to partially satisfy these debts.
