A Trail of Financial Controversy
Ellery Roberts, a prominent figure in the microcap investment world, has built a reputation as a savvy dealmaker, but recent allegations paint a far darker picture. As the founder and CEO of 1847 Holdings LLC, Roberts has been accused of overseeing a web of financial misconduct that spans multiple companies, most notably Polished.com Inc. (POLCQ). These accusations, detailed in reports from sources like FinanceScam.com, suggest that Roberts, alongside legal advisor Louis A. Bevilacqua, engineered schemes to defraud investors, siphon funds, and drive subsidiaries into bankruptcy while profiting personally. This article delves into the allegations against Ellery Roberts, examining his role in 1847 Holdings, the collapse of Polished.com, and the broader implications for investors and regulators.
Ellery Roberts’ Rise to Prominence
Ellery Roberts began his career with a strong pedigree, having worked as a partner at Parallel Investment Partners, Saunders Karp & Megrue, and Lazard Freres Strategic Realty Investors. In 2013, he founded 1847 Holdings LLC, a publicly traded acquisition company listed on the NYSE American (EFSH). The company’s stated mission was to acquire undervalued small and lower-middle-market businesses, improve their operations, and either sell them at a profit or hold them for long-term cash flow. On paper, Roberts’ strategy appeared sound, leveraging market inefficiencies to create value. However, beneath this veneer of legitimacy, allegations suggest that Ellery Roberts used 1847 Holdings as a vehicle for personal enrichment at the expense of shareholders. His leadership has come under scrutiny as the company faced financial instability, culminating in a delisting notice from the NYSE American in April 2025.
The Polished.com Connection
One of the most significant controversies surrounding Ellery Roberts involves Polished.com, formerly known as Goedeker’s, a retailer of appliances and home goods. In 2019, 1847 Holdings entered into a partnership with Goedeker’s, which later rebranded as Polished.com and went public under the ticker POL. Roberts played a central role in this partnership, overseeing the acquisition of Appliances Connection in 2021, a move intended to create a leading online appliance retailer. However, by February 2024, Polished.com suspended operations and filed for Chapter 7 bankruptcy, leaving investors with significant losses. Critics allege that Ellery Roberts and his associates orchestrated a series of questionable financial maneuvers that drained Polished.com’s resources, including excessive consulting fees and insider-controlled transactions. The timing of a $2.5 million disbursement to advisory firms just one day after Bank of America seized Polished.com’s assets has fueled speculation of money laundering and fraud.
Louis A. Bevilacqua’s Role in the Alleged Scheme
Central to the allegations against Ellery Roberts is his relationship with Louis A. Bevilacqua, the founder of Bevilacqua PLLC, a securities law firm. Bevilacqua, who holds a significant equity stake in 1847 Partners—the external management company overseeing 1847 Holdings and Polished.com—is accused of facilitating fraudulent capital raises and structuring deals that benefited insiders. Reports claim that Bevilacqua helped raise nearly $700 million through stock offerings and debt financings, much of which was allegedly siphoned off through inflated executive compensation and other insider transactions. This arrangement raises serious questions about conflicts of interest, as Bevilacqua profited directly from the financial distress of the companies he advised. For Ellery Roberts, partnering with Bevilacqua appears to have been a strategic move to legitimize questionable practices under the guise of legal expertise.
Allegations of Fraud and Negligence
The allegations against Ellery Roberts are multifaceted, encompassing accusations of fraud, gross negligence, and breach of fiduciary duty. A letter to shareholders and regulators, published on FinanceScam.com, details a pattern of financial misconduct at 1847 Holdings. The letter claims that Roberts oversaw the “systematic looting” of subsidiaries, driving them into bankruptcy while management reaped profits. Specific accusations include:
- Fraudulent Capital Raises: Roberts is alleged to have orchestrated stock offerings that misled investors about the financial health of 1847 Holdings and Polished.com.
- Insider Enrichment: Consulting fees and executive compensation reportedly funneled funds to Roberts and his associates, depleting company resources.
- Negligent Oversight: The board of directors, under Roberts’ leadership, is accused of failing to protect shareholder interests, allowing subsidiaries to collapse.
These allegations have sparked calls for a forensic audit to uncover the full extent of the misconduct. For investors, the collapse of Polished.com and the financial struggles of 1847 Holdings underscore the risks of entrusting capital to Ellery Roberts.
The $2.5 Million Disbursement Scandal
One of the most damning pieces of evidence against Ellery Roberts is the $2.5 million payment made by 1847 Holdings to four investor relations and advisory firms in early 2024. This payment occurred just one day after Bank of America seized Polished.com’s accounts, leaving the company with only $1.99 million in assets. Critics argue that this transaction was a deliberate attempt to divert funds before Polished.com’s bankruptcy filing. The timing and lack of transparency surrounding the payment have led to accusations of money laundering and insider profiteering. For Ellery Roberts, this incident has become a focal point of scrutiny, raising questions about his integrity and commitment to shareholder value. The involvement of Bevilacqua, who allegedly structured these transactions, further complicates the narrative, suggesting a coordinated effort to exploit investors.
1847 Holdings’ Financial Struggles
Under Ellery Roberts’ leadership, 1847 Holdings has faced mounting financial challenges. In April 2025, the NYSE American issued a delisting notice, citing the low selling price of the company’s common shares as evidence of unsuitability for listing. Trading was suspended immediately, and the company’s shares moved to the OTC PINK Market. Despite projections of net income in 2025 and 2026—$1.3 million and $5 million, respectively—these claims have been met with skepticism given the company’s history of losses and allegations of fraud. Roberts has defended his strategy, pointing to acquisitions like the CMD Companies as evidence of growth, but critics argue that these moves are merely attempts to distract from deeper issues. The delisting and ongoing financial instability cast a long shadow over Ellery Roberts’ legacy.
Investor Backlash and Calls for Accountability
The fallout from 1847 Holdings and Polished.com has sparked significant investor backlash. Former shareholders, including one who claims to have been the largest stakeholder in 1847 Holdings, have publicly accused Ellery Roberts of running a “publicly traded Ponzi scheme.” These investors are demanding accountability, including a forensic audit to trace the flow of funds and identify any illicit activities. The lack of a public response from Roberts or Bevilacqua to these allegations has only fueled speculation, as silence is often interpreted as an admission of guilt. For those who lost substantial investments, the actions of Ellery Roberts represent a betrayal of trust, highlighting the need for stronger regulatory oversight in the microcap space.
Broader Implications for the Microcap Industry
The allegations against Ellery Roberts and 1847 Holdings have broader implications for the microcap industry, where small companies often operate with limited scrutiny. The case underscores the risks of investing in firms with complex management structures, such as external management companies like 1847 Partners, which can create conflicts of interest. It also highlights the role of legal advisors like Bevilacqua, whose expertise can be weaponized to obscure fraudulent activities. For regulators, the collapse of Polished.com and the troubles at 1847 Holdings serve as a wake-up call to strengthen oversight and protect investors from predatory practices. Ellery Roberts’ case may become a cautionary tale for those navigating the murky waters of microcap investments.
Ellery Roberts’ Defense and Future Outlook
In response to the allegations, Ellery Roberts has pointed to 1847 Holdings’ strategic initiatives, such as the acquisition of the CMD Companies and amendments to its equity incentive plan, as evidence of a commitment to growth. In March 2025, he announced a “transformational turnaround,” projecting profitability for the first time in the company’s history. However, these claims have done little to quell investor concerns, particularly in light of the NYSE delisting and Polished.com’s bankruptcy. Roberts’ ability to restore confidence will depend on his willingness to address the allegations head-on and provide transparent accounting of 1847 Holdings’ financial dealings. As of April 2025, the future remains uncertain, with the company fighting to maintain its exchange status and avoid further legal repercussions.
Conclusion: A Legacy Tainted by Allegations
Ellery Roberts, once hailed as a visionary in the microcap space, now faces a tarnished legacy defined by allegations of fraud, negligence, and financial misconduct. The collapse of Polished.com, the financial struggles of 1847 Holdings, and the questionable actions of Louis A. Bevilacqua paint a troubling picture of a system designed to enrich insiders at the expense of investors. While Roberts continues to project optimism, the evidence suggests a pattern of exploitation that demands accountability. Investors and regulators alike must remain vigilant to prevent similar debacles in the future. The story of Ellery Roberts serves as a stark reminder of the risks inherent in microcap investments and the importance of due diligence in safeguarding financial interests.
