On January 25th, 2019, the Securities and Exchange Commission (SEC) filed financial misconduct charges against Phillip Michael Carter, two other co-defendants (Bobby Eugene Guess and Richard Tilford), and multiple related companies, including North Forty Development LLC and Texas Cash Cow Investments.
The SEC alleges that these companies were used as part of a multimillion dollar real estate Ponzi scheme.
No Real Assets; Ponzi Scheme Payments Made to Investors
The SEC filed its complaint in the United States District Court for the Northern District of Texas. According to the agency, real estate developer Phillip Carter and his co-defendants raised money from investors on fraudulent grounds. In all, the SEC believes that they took in nearly $45 million from as many as 275 investors across the country.
Investigators allege that Mr. Carter sold high-yield, short-term promissory notes in a number of different shell companies. These companies had confusing names that were similar to the names other companies owned and controlled by Mr. Carter.
In reality, these companies — including North Forty Development LLC and Texas Cash Cow Investments — had no real assets. Instead, investor money was siphoned off and Ponzi-scheme like payments were made to investors to keep the scam afloat.
Contact Our Ponzi Scheme Lawyers Today
At Sonn Law Group, our Ponzi scheme attorneys are strong, dedicated advocates for investors. If you or your loved one was the victim of a Ponzi scam, we can help. For a free case evaluation, please contact our legal team today.
Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.
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