York County, SC, Sheriff says law enforcement probe into Tepper companies will continue

A $21 million civil settlement between York County and companies controlled by Carolina Panthers owner David Tepper does not impact an ongoing law enforcement investigation, the York County Sheriff said Thursday.

The civil court bankruptcy settlement was filed by Tepper-owned company GT Real Estate in court documents late Wednesday night. York County government issued a statement confirming the settlement.

But the York County, S.C., sheriff said the law enforcement probe is unaffected.

“This agreement was reached with county government and not the Sheriff’s Office and does nothing to affect the current investigation into the possible misuse of public funds,” York County Sheriff Kevin Tolson said in a statement Thursday.

The sheriff and solicitor in York County are elected law enforcement officials who are autonomous from county government in making law enforcement and prosecution decisions.

GT Real Estate is the company Tepper created to build the team’s headquarters in Rock Hill, S.C., south of Charlotte. Construction halted in March in a money dispute. GTRE filed bankruptcy June 1.

GTRE officials told The Herald Thursday they are aware of the sheriff’s statement saying the civil settlement does not affect the investigation, but declined further comment.

The law enforcement investigation

York County had filed two lawsuits against Tepper companies alleging misuse of $21 million in road tax money. The lawsuits claimed the money could only be used for roads.

Tepper companies have denied all misuse and York County claims.

On Dec. 1, the sheriff and South Carolina Law Enforcement Division announced the agencies were investigating Tepper and four of his companies -- DT Sports Holding, Tepper Sports Holding, Appaloosa Management, and GT Real Estate. The focus of the investigation is the transfer and use of $21 million York County spent on the project. The sheriff’s office asked South Carolina state police to assist, along with the 16th Circuit Solicitor’s Office and S.C. Attorney General.

The sheriff and solicitor said on Dec. 1:

“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.”

In a statement last week, GTRE expressed concern over the politics and the timing of the announcement of the investigation. The law enforcement probe was made public just a day after the sides tentatively reached a deal in the bankruptcy.

The full GTRE statement from Dec. 1 stated:

“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.”

What happens next?

A federal judge is set to hold a bankruptcy confirmation hearing, which includes settlements for $21 million with York County and $20 million with Rock Hill on Dec. 14.

That civil court hearing is separate from any ongoing law enforcement investigation into the money.

SLED officials confirmed Thursday that their investigation is continuing.

This story was originally published December 8, 2022 at 1:19 PM.

Andrew Dys

The Herald

803-329-4065

Andrew Dys covers breaking news and public safety for The Herald, where he has been a reporter and columnist since 2000. He has won 51 South Carolina Press Association awards for his coverage of crime, race, justice, and people. He is author of the book “Slice of Dys” and his work is in the U.S. Library of Congress.