More companies operated by the late Rick Siskey are set to be pushed into bankruptcy as attorneys continue to seek repayment for investors caught up in an alleged Ponzi scheme.
Siskey took his own life in December, days after court filings gave the first public indication that he was under investigation for fraud allegations. An FBI affidavit unsealed in January alleged he was operating a Ponzi scheme and that more than 100 investors could be out as much as $19 million.
Last month, attorneys for investors filed an involuntary bankruptcy petition against TSI Holdings, the investment fund that was the focus of the FBI affidavit. At a hearing in federal bankruptcy court on Wednesday, attorney James Henderson said he expects to take similar action against three other entities mentioned in the affidavit: WSC Holdings, SouthPark Partners and Sharon Road Properties.
At a hearing earlier this month, the bankruptcy court appointed attorney Joseph Grier as a trustee charged with sorting through TSI’s assets and identifying investors with potential claims. After Wednesday’s hearing, Grier said he is still working to identify the total amount that may have been lost by investors, noting that there are Siskey entities beyond TSI.
Grier said the largest available asset to investors appears to be life insurance proceeds stemming from Rick Siskey’s death. Siskey’s widow has said she would set aside $37.5 million of the $46.94 million for investors and other creditors. Life insurance proceeds typically pay out after two years even in suicides.
In court, Grier also said Diane Siskey is looking to sell the couple’s prominent SouthPark home on Sharon Road. The home has been subject to seizure by the federal government, and Benjamin Bain-Creed of the U.S. Attorney’s Office in Charlotte said at the hearing that the government is cooperating with Grier.
The U.S. Securities and Exchange Commission is also investigating the matter, but doesn’t plan to interfere in the bankruptcy proceedings if it appears that the process is maximizing repayment for investors, SEC attorney David Baddley said at the hearing.
Grier’s law firm, Grier Furr & Crisp, has launched a web site where Siskey investors can learn more about the case and provide contact information at https://tsiholdings.wordpress.com/.
After moving to Charlotte in 1985, Rick Siskey became known as the founder of financial services firm Wall Street Capitol, with which he was no longer associated at the time of his death. He also invested in start-up companies and real estate. The YMCA branch in Matthews bears the family’s name.