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

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s