Siskey’s widow says she will set aside most insurance money for investors

The wife of Rick Siskey, the late Charlotte businessman who the FBI has alleged was running a Ponzi scheme, intends to place the “bulk” of any insurance proceeds into an independent escrow account for investors, her attorneys said this weekend.

Rick Siskey committed suicide Dec. 28, a week after court filings gave the first public indication that he was under investigation for fraud allegations. An FBI affidavit unsealed this month alleged he was operating a Ponzi scheme and that more than 100 investors could be out as much as $19 million.

In a letter sent to investors Saturday, Alston & Bird attorneys Thomas Walker and Matthew McGuire say Diane Siskey is the named beneficiary of “substantial life insurance policies” in her husband’s name. She has filed claims on the policies, but so far has received none of the proceeds.

“If received, you should know that Diane intends to place the bulk of these funds into an independent escrow account,” the attorneys write in the letter obtained by the Observer.

“This will be done with full disclosure to the (Securities and Exchange Commission) and other federal agencies. Diane wishes to escrow these funds voluntarily to assure both creditors of Rick’s estate and regulators that these funds will be protected as all parties – investors, other creditors, regulators, and Diane herself – investigate and determine what has happened and who is owed what.”

The letter says Diane is committed to moving the process forward as soon as possible.

Since the fraud allegations and Rick Siskey’s death, investors have been scrambling to determine what they are owed and whether authorities will help them get them their money back. Walker, Diane’s attorney, has said she is cooperating with authorities, including the Securities and Exchange Commission.

The FBI affidavit unsealed last month focuses mostly on a fund started by Siskey called TSI Holdings, but also mentions four other Siskey-related business ventures: WSC Holdings, SouthPark Partners, Siskey Industries and Sharon Road Properties. He was also the founder of financial services firm Wall Street Capitol, which was once associated with MetLife, although he has not been affiliated with the firm since 2010 or 2011, sources said.

Authorities have not suggested that Rick Siskey had any co-conspirators.

Last week, Charlotte attorney Charles Monnett filed a petition asking the court not to appoint Diane Siskey as the representative of her husband’s estate, saying it was a potential conflict of interest. That’s because any payments to investors could reduce her share of the estate.

In Saturday’s letter to investors, Diane’s attorneys said she does not plan to serve as the executor of her husband’s will, even though she was named to that role.

“This is intended to avoid any potential conflict of interest and assure all creditors of Rick’s estate that the probate process will be conducted in the best interests of creditors,” the letter says.

Diane Siskey’s attorneys did not immediately respond to a request for comment.

This story was originally published January 22, 2017 at 2:02 PM with the headline "Siskey’s widow says she will set aside most insurance money for investors."