SC Law Enforcement investigating York County’s money transfer to Tepper companies

The South Carolina Law Enforcement Division is investigating the transfer of money from York County to companies owned by Carolina Panthers owner David Tepper, according to a statement from SLED officials.

The investigation was opened in November after a request by the S.C. Attorney General, York County sheriff, and York County’s top prosecutor, officials said.

Late Thursday, SLED sent an emailed statement to The Herald confirming the investigation.

That statement says:

“SLED opened an investigation on November 7, 2022 into the transfer of public funds from York County to GTRE and/or it’s affiliates to include David Tepper, Appaloosa Management, Tepper Sports Holding and DT Sports Holding.

SLED was requested to investigate by York County Sheriff Kevin Tolson, York County Solicitor Kevin Brackett and Attorney General Alan Wilson.

This joint investigation with the York County Sheriff’s Office is ongoing, as such, no additional information is available at this time.”

The SLED statement comes a day after lawyers for Tepper companies and York County stated in court documents that the two sides had reached a settlement in the bankruptcy and related lawsuits.

York County, Tepper company reach tentative agreement in Panthers’ SC HQ bankruptcy

GTRE, or GT Real Estate, is the company created by Tepper to oversee what would have been the NFL team’s headquarters and practice facility in Rock Hill, S.C. The project failed and resulted in GT Real Estate filing for bankruptcy. There also have been other related lawsuits.

In civil court documents from the GT Real Estate bankruptcy and lawsuits filed by York County, Tepper company lawyers have denied any wrongdoing.

GT Real Estate questions timing, motivation

Late Thursday, GT Real Estate issued a written statement to The Herald about the investigation.

The statement raised questions about the timing of the investigation announcement, a day after the settlement was confirmed that would, if approved, end the dispute between GTRE and York County.

GT said in the statement that the proposed settlement would pay York County the $21 million it originally asked for in the bankruptcy, plus interest.

The full GT Real Estate statement says:

“It would be unfortunate if the recently announced settlement between GTRE and York County were somehow undermined by politically motivated leaks. The timing of these leaks is all the more curious in light of this settlement.

This is a straightforward commercial matter that is being fully resolved. The underlying disputes arise under contracts that were jointly negotiated by the parties and are publicly available. The funds paid by the County were handled consistent with the terms of those contracts.

The settlement fully compensates York County and settles all its claims related to GTRE’s bankruptcy case. To this end, $21.165 million has been escrowed for months to reimburse the County with interest.”

No charges have been filed against anyone or any group and there has been no allegation of wrongdoing, sheriff and solicitor’s office officials said.

While there have been pending civil lawsuits for months during the bankruptcy of GT Real Estate, the SLED statement points to the first law enforcement inquiry associated with the project.

Full statement from York County Sheriff and solicitor

In a joint statement released Thursday night by York County Sheriff Kevin Tolson and 16th Circuit Solicitor Kevin Brackett, both said there should be no inference of any wrongdoing.

Here is the entire statement from Tolson and Brackett:

“An investigation into the circumstances surrounding the transfer to, and subsequent use of public money by the Carolina Panthers owner David Tepper and GTRE, the company created to oversee the construction of the Panthers training facility, was initiated by the York County Sheriff to determine whether any laws were violated during that process. The Attorney General, Solicitor Kevin Brackett’s Office and the State Law Enforcement Division have partnered with us to provide additional resources and assistance and we will work together to ensure that all relevant information is gathered so that a fair and just outcome can be reached.

An investigation is simply an inquiry and should not create any inference that wrongdoing has been committed by any party.

This office will have no further comment on the matter at this time.”

Questions about Pennies for Progress money

A deal had been struck with South Carolina, York County, and Rock Hill officials to move the team’s headquarters and practice fields to South Carolina.

Construction started on the site but GT halted construction in March. GT declared bankruptcy in June.

Appaloosa Management, Tepper Sports Holding and DT Sports Holding are all Tepper companies, according to Tepper company documents in the ongoing bankruptcy case and ongoing lawsuits related to the bankruptcy case.

In the bankruptcy case and related civil lawsuits, York County alleged it gave GT Real Estate more than $21 million in Pennies for Progress road tax money for the project. The county claimed the money could only be used for road improvements.

York County filed suit demanding the $21 million back, plus interest and money for projected tax revenues that were lost when the project collapsed.

This week, lawyers for York County and lawyers GT Real Estate announced in statements and court documents that a proposed settlement had been reached that would end all civil lawsuits between York County and the Tepper companies. That settlement has not yet been filed in court, nor has it been approved by a judge.

York County had previously filed two civil lawsuits against Tepper companies.

In the first lawsuit filed in June in South Carolina federal court, York County alleged DT Sports Holding, Tepper Sports Holding and Appaloosa Management were engaged in a conspiracy to misappropriate the $21 million. That suit, which called the failed practice site a “vanity project,” named Appaloosa Management LP, DT Sports Holding, Tepper Sports Holding Inc, and the City of Rock Hill as defendants. Tepper is one of the founders of Appaloosa Management.

In that civil lawsuit, York County alleged Tepper’s companies directed misappropriation of $21 million.

Then in September, York County filed a suit against GT Real Estate. In that lawsuit, York County claimed GT “squandered” the $21 million and converted it for “others’ improper use and unjust enrichment.”

Tepper company lawyers filed countersuits against York County in those civil cases and denied York County’s allegations of unjust enrichment and misuse of money.