On January 27, 2017, Michael D’Agata, Charlotte Dreibelbis, and Anthony William Packer filed an involuntary petition against TSI Holdings, LLC, thereby initiating a chapter 7 bankruptcy case currently pending before the United States Bankruptcy Court for the Western District of North Carolina as case number 17-30132.  Rick Siskey allegedly operated a Ponzi Scheme through TSI Holdings, LLC.

On February 8, 2017, the Honorable J. Craig Whitley issued an Order Requiring Appointment of Interim Trustee appointing Joseph W. Grier, III (the “Trustee”) of Grier Furr & Crisp, PA as the Interim Trustee for TSI Holdings, LLC.  The Order directs the Trustee to preserve property of, and prevent loss to, the bankruptcy estate and enumerates the following duties:  (1) take possession of the property of TSI Holdings, LLC’s bankruptcy estate; (2) collect and analyze TSI Holdings, LLC’s financial records to identify all property lost through fraudulent transfers and/or preferences, and to bring the property back into the estate for the benefit of creditors; and (3) take all other acts necessary to preserve and protect the property of TSI Holdings, LLC’s bankruptcy estate, including taking possession of property as might be necessary to prevent any further loss to the estate.

Since his appointment as the Trustee for TSI Holdings, LLC, the Trustee has been appointed in other bankruptcy cases for entities related to TSI Holdings, LLC:  WSC Holdings, LLC (Bankr. W.D.N.C. case number 17-30338); SouthPark Partners, LLC (Bankr. W.D.N.C. case number 17-30339); and Sharon Road Properties, LLC (Bankr. W.D.N.C. case number 17-30363).

This website will be the Trustee’s primary means of communication with investors and the public.  The Trustee will use this site to provide updates on the status of the TSI Holdings, LLC bankruptcy (and related legal proceedings) and to post pleadings entered in such actions.  Please be encouraged to post questions on this site, and the Trustee will answer those questions as time and resources allow, with a focus on fielding inquiries that have general applicability to all investors and/or the public.  You may also communicate with the Trustee at tsiholdings@grierlaw.com.  Please check back periodically for additional information.


Trustee Serves Discovery Requests on Stone Street, Porter, and King

In furtherance of challenging the claims made against the Debtors by Stone Street Partners, LLC (f/k/a Siskey Capital, LLC), Paul G. Porter, and Dawn E. King, the Trustee served the discovery requests linked below earlier this week.  The discovery is designed to help the Trustee assess the true nature and validity of Stone Street Partners, LLC’s, Porter’s, and King’s claims against TSI Holdings, LLC, WSC Holdings, LLC, SouthPark Partners, LLC, and Sharon Road Properties, LLC.

1st Request for Production of Documents – TSI Claims Report – Stone Street

1st Request for Production of Documents – TSI Claims Report – Porter

1st Request for Production of Documents – TSI Claims Report – King

COURT DENIES TRUSTEE’S Motion for Authority to Enter into Agreement with Diane Siskey to Release a Portion of Life Insurance Proceeds (and enable interim distribution)

Given the Objections of Stone Street Partners, LLC and Tobitha Deese the Court denied the Trustee’s proposed agreement with Diane Siskey.   The Trustee is therefore not able to make an interim distribution at this time.  The Trustee will continue to work toward a global resolution with Diane Siskey with regard to the life insurance proceeds which would allow for  distribution to Ponzi victims.

Sharon Road Properties Outside Investors and Premier Fund Claimants

On March 13, 2018 the Bankruptcy Court considered the Sharon Road Properties Outside Investor Claims and the Premier Fund Claims.    After considering the Response filed by Tobitha Deese and hearing arguments of counsel the Court denied allowance of those claims in the Bankruptcy Cases without prejudice.  Once a written Order is entered it will be linked here.

Stone Street Partners Objects to Partial Settlement

On February 3, 2018, the Trustee filed the Trustee’s Motion for Authority to Enter into Agreement with Diane Siskey to Release a Portion of Life Insurance Proceeds (and Enable Interim Distribution) (the “Partial Settlement Motion”), which is included in a below post dated February 4, 2018.  As described in the Partial Settlement Motion, approval of the settlement would enable the trustee to make an interim distribution to investor victims.

Stone Street Partners LLC (f/k/a Siskey Capital, LLC) (“Stone Street”) filed a $17,383,847 claim in each of the Siskey-related bankruptcy cases, alleging that each of the debtors is liable to Stone Street for (i) negligence, (ii) breach of fiduciary duties, (iii) constructive fraud, (iv) breach of contract, and (v) interference with Stone Street’s economic relationships with its clients (many of whom are the same clients to which Stone Street seeks to deny an interim distribution).  The Trustee has objected to the claim(s) filed by Stone Street, but the court has not yet ruled on the allowance of Stone Street’s claim.

As set forth in paragraph 16 of the Partial Settlement Motion, the Trustee requested that Stone Street consent to the proposed partial settlement with Diane Siskey.   In lieu of granting such consent, Stone Street filed its Objection and Brief in Opposition to the Trustee’s Motion to Approve Partial Settlement with Diane Siskey (the “Stone Street Objection”) (linked below).

The Trustee will address all of the points made in the Stone Street Objection at the hearing on the Partial Settlement Motion scheduled for Monday, March 12th at 2:00 pm in Bankruptcy Courtroom 1-4 in the United States Courthouse, 401 West Trade Street, Charlotte, North Carolina.  However, the Trustee will note here that the Trustee is NOT waiving any right to claim or claw back the approximately $2,000,000.00 that was paid to Jenna Siskey Negrelli (Rick and Diane Siskey’s daughter) from Met Life Policy x825, as suggested in the Stone Street Objection.

If the Court grants Stone Street the relief sought by Stone Street and denies the Partial Settlement Motion, then the Trustee will not be authorized to make the interim distribution to investor victims contemplated in the Partial Settlement Motion.

Stone Street Objection and Brief Opposing Partial Settlement Motion



Update on March 12, 2018 Court Hearing

The hearing on the Motion to Approve Settlement with Diane Siskey to release a portion of life insurance proceeds and the hearing on the claims of the Sharon Road Properties Outside Investors and Premier Fund investors has been moved to March 12, 2018 at 2:00 pm (originally scheduled for 9:30 am that day).    The hearing will be in Bankruptcy Court room 1-4 at the United States Courthouse, 401 West Trade Street, Charlotte, North Carolina.