James H. Brennan, who is being sued by the Securities and Exchange Commission along with Douglas Dyer, said he is losing his house on Missionary Ridge due to a funds freeze in the case.
He is asking Judge Travis McDonough for partial relief from the freeze.
Mr. Brennan said in a letter to the judge that he has been unable to continue the mortgage payments for the house on South Crest Road due to the freeze.
He said his wife, Carole J. Brennan, who is also sued, has moved out.
Mr. Brennan said the house was bought in 2000, which he said is eight years before the Scenic Cities investment firm was formed. Some 250 investors claim they were scammed of up to $5 million.
He is asking that he be allowed to sell furnishings from the house. He said if it goes into foreclosure that the furnishings would only bring "pennies on the dollar."
He said the proceeds from the sale of the furnishings could be distributed by the judge as he sees fit.