HCGM loses money in Ponzi scheme - TSI holdings

[shocka khan]

Did anyone see this?

http://www.bizjournals.com/wichita/news/2017/04/07/report-wsu-coach-gregg-marshall-among-investors.html

According to the article, HCGM lost 200K in this fraud.

Anyone with knowledge of the scheme care to make comments?

[DUShock]

Unfortunately, a mini-madoff.

[shocka khan]

Yes, and evidently a respected member of the Charlotte business community who stole money from a bunch of people to fund his lavish lifestyle.

Here's another link I dug up from the Charlotte Observer:

http://www.charlotteobserver.com/news/business/article126535184.html

I feel sorry for his widow. He took the easy way out and killed himself, leaving her with an absolute mess. Note she even got thrown out of the home they had owned. Not that I feel bad about that (I'm sure the bankruptcy trustee had a legal and moral obligation to do it), but too bad the person ultimately responsible for all of this found it so easy to be a quitter.

[BOBB]

Unfortunate all around. Given HCGM's connections and the size of the investment an attorney or other advisor could have run this to ground and avoided the loss. Highly successful people are very susceptible to these types of scams because they assume their success and knowledge applies to all areas. This is why doctors are routinely-and legally-fleeced by commercial real estate brokers and developers. Fortunately, HCGM is in a position to absorb the loss, but $200k is a lot of money to torch regardless of your balance sheet.

[1972Shocker]

Probably a scheme run by a friend or long-time acquaintance of 3G or more likely a scheme long-time friends of 3G were invested in and they convinced him to join in.

Fortunately, a $200k investment loss for a man of 3G's means is not all that significant. The government will absorb some of it through either capital loss deductions or theft losses if it is in fact proven to be a Ponzi scheme. A guy like 3G can easily lose $200K in totally legitimate investments if he is allocating part of his portfolio to higher risk investments. Heck, he could of lost that easily in blue chips stocks in 2008.

WSU already covered $25k of the loss when they awarded 3G his Coach of the Year bonus even though they were not contractually obligated. I think he will still be able to afford as many cheeseburgers as he likes.

The thing that pisses you off on these deals is that after the fact you feel violated and perhaps a bit dumb but these kind of things have happened to some very, very smart people because the crooks are very good at what they do.

Hopefully, most who got pulled in could easily absorb the loss like 3G can. Chances are though there are those who may have bet the farm and got crushed.

[BOBB]

Probably a scheme run by a friend or long-time acquaintance of 3G or more likely a scheme long-time friends of 3G were invested in and they convinced him to join in.

Fortunately, a $200k investment loss for a man of 3G's means is not all that significant. The government will absorb some of it through either capital loss deductions or theft losses if it is in fact proven to be a Ponzi scheme. A guy like 3G can easily lose $200K in totally legitimate investments if he is allocating part of his portfolio to higher risk investments. Heck, he could of lost that easily in blue chips stocks in 2008.

WSU already covered $25k of the loss when they awarded 3G his Coach of the Year bonus even though they were not contractually obligated. I think he will still be able to afford as many cheeseburgers as he likes.

The thing that pisses you off on these deals is that after the fact you feel violated and perhaps a bit dumb but these kind of things have happened to some very, very smart people because the crooks are very good at what they do.

Hopefully, most who got pulled in could easily absorb the loss like 3G can. Chances are though there are those who may have bet the farm and got crushed.

HCGM makes $3.25ish before taxes, for the sake of argument let's say he makes $2.5 after. You wouldn't miss 8% of your annual nut? The point about friends or acquaintances involvement only furthers my point of third party due diligence. Not victim blaming at all, just a word to the wise as these things happen at the $2M, $20k and $200 level as well and the same rules apply.

[1972Shocker]

HCGM makes $3.25ish before taxes, for the sake of argument let's say he makes $2.5 after. You wouldn't miss 8% of your annual nut? The point about friends or acquaintances involvement only furthers my point of third party due diligence. Not victim blaming at all, just a word to the wise as these things happen at the $2M, $20k and $200 level as well and the same rules apply.

What % of his net worth and present value of his future earnings stream does it represent? I have no idea but it isn't very much. He isn't changing his life style because of this.

It's unfortunate but he isn't the 1st person to incur an investment loss (whether legitimate or otherwise) and multitudes of others have fared far worse on these kind of deals. Financially, this is a very minor bump in the road for 3G. Thank goodness.

[ShockTalk]

There is more money losses than TSI involved:

"TSI and other Siskey companies have since been pushed into bankruptcy, and an attorney representing some of the investors has said losses could exceed $51 million, including the $21 million in TSI."

However, there may be some restitution available:

"Diane Siskey has pledged to set aside $37.5 million of the $47 million in life insurance proceeds from her husband’s death for investors. But attorneys for investors have said that might not be enough."

And possibly available from here:

"Last month, one of Rick Siskey’s investors filed suit against Metropolitan Life Insurance Co. and its securities arm for turning a “blind eye” to Siskey’s activities.
Siskey founded a firm called Wall Street Capitol around 2000 that operated under the MetLife umbrella. He was no longer associated with the firm at the time of his death, according to an attorney for some of its representatives, but he still worked in the same SouthPark office building topped by a Wall Street Capitol sign.
Diane Siskey was also a registered broker with MetLife’s securities arm from 2001 until December of last year, according to industry records."

Read more here: http://www.kansas.com/sports/college...#storylink=cpy