State regulators are investigating two companies run by a deceased Harnett County businessman who has been accused of running a Ponzi scheme.
The administrator for the estate of Raymond Mulkey Jr. has notified the state Department of Insurance about questionable data that was uncovered during a review of Mulkey’s estate, said department spokeswoman Kristin Milam.
The department's Agent Services Division is conducting audits of two of Mulkey's insurance agencies, Southeastern Insurance Services and Mulkey & Associates.
Those audits are ongoing, Milam said.
Mulkey, 63, was found dead in his home in North Myrtle Beach, S.C., on Aug. 16. The Horry County coroner has said a cause of death has yet to be determined.
Since Mulkey’s death several small North Carolina banks have discovered apparent fraud by borrowers on loan applications and paperwork involving the extension of loans.
In a Securities and Exchange Commission filing made Wednesday, Four Oaks Bank said it expects to write off about $4 million in bad loans because of an apparent fraud by one of its customers. The bank did not name the customer.
Dunn-based New Century Bank has already said it could write off $11 million in loans because of alleged fraud committed by one of the bank's former directors.
Mulkey was a founding director of New Century, which has ties to a number of prominent Democrats.
Former state Senate majority leader Tony Rand and former Secretary of Transportation Lyndo Tipped serve on the bank’s board.
According to filings with the N.C. Secretary of State's office, Mulkey had financial dealings with Four Oaks Bank and several other lenders.
Mulkey was president of a number of finance, insurance and real estate firms, including Ray Mulkey Realty and NC Premium Finance Cos.
His NC Premium Finance Cos., which included 45 Premium Finance entities and one called Budg-O-Matic Finance, financed auto insurance premiums for people with low income or poor credit.
Fayetteville attorney Lonnie Player Jr. has said he represents seven clients who are trying to recover about $2.3 million they invested with Mulkey and NC Premium Finance Cos. in recent years.