• SEC charges come two months after the Texas State Securities Board charged Christian Custom Homes CEO Phillip Carter with fraud
  • Agency alleges Carter and two co-conspirators defrauded more than 270 investors
  • Christian Custom Homes and several other companies owned by Carter are now under control of new manager

A little more than two months after the state of Texas charged Frisco-based Christian Custom Homes CEO Phillip Michael Carter with several fraud charges, the Security and Exchange Commission announced it too would charge him and two other alleged co-conspirators with fraud.

Phillip Carter, left; Shelley Carter, right.

In November, the Texas State Securities Board announced the indictments of Carter, and his wife, Shelley Noel Carter, on assorted state fraud charges stemming from alleged misuse of investor funds meant to go to real estate development ventures. Carter was also indicted in Collin County Court on charges stemming from the sale of fraudulent promissory notes, along with Richard Gregory Tilford of Arlington, who is alleged to have raised $6 million from investors. Carter’s wife, Shelley, was charged with money laundering and misapplying investor funds.

Bobby Eugene Guess

The state’s indictment against Carter alleges that he raised nearly $17.5 million from nearly 100 investors, primarily elderly Texans, for real estate development projects through Texas Cash Cow Investments Inc. and North Forty Development LLC.

One of Carter’s sales agents, Bobby Eugene Guess — had been served with a target letter from the U.S. Attorney’s Office informing him that he was under investigation for mail fraud, money laundering, and securities fraud, and in July he was sentenced to 12 years in state prison.

Guess, a former wealth manager, also hosted the radio program “Dollars & Sense” on WBAP.

The state charges for Tilford and both Carters remain pending.

The SEC Alleges ‘Multi-Million Dollar Offering Fraud’

The SEC’s announced it was charging Carter, Guess, and Tilford for conducting “multi-million dollar offering fraud.”

The agency alleged that the three raised almost $45 million from more than 270 investors across the country by selling short-term, high-yield promissory notes that were issued by shell companies that the SEC alleged were intentionally created to confuse investors. (more…)

Christian Custom Homes president Phillip Carter in a still from a promotional video. Carter, several associates, and his wife were indicted recently for fraud.

Investors were lured by brochures, radio interviews, and email invitations for dinners, where they could learn about “9% investment return opportunities” with North Forty Development and Texas First Financial. Instead, hundreds saw their money allegedly spent on anything but real estate development.

Phillip Carter, left; Shelley Carter, right. (Photos courtesy Texas State Securities Board)

The president of Frisco-based Christian Homes, Phillip Michael Carter, and his wife, Shelley Noel Carter, were indicted Tuesday on assorted state fraud charges stemming from alleged misuse of investor funds meant to go to real estate development ventures, the Texas State Securities Board announced Wednesday.

Phillip Carter was also indicted last week in Collin County Court on charges stemming from the sale of fraudulent promissory notes, along with Richard Gregory Tilford of Arlington, who is alleged to have raised $6 million from investors.

Carter’s wife, Shelley, was charged with money laundering and misapplying investor funds.

The indictment against Carter alleges that he raised nearly $17.5 million from nearly 100 investors, primarily elderly Texans, for real estate development projects through Texas Cash Cow Investments Inc. and North Forty Development LLC.

“Carter and Tilford told investors their money would be used to develop commercial and residential properties,” the TSSB said.

But instead of using those funds for revenue-generating investments, Carter used them for things like paying personal expenses and paying off a personal Internal Revenue Service tax lien. (more…)

Frisco Custom Luxury
When I first laid eyes on this Frisco custom luxury spec home in the Hills of Kingswood at 4012 Starling Drive a few weeks ago, it was still in the final stages of construction. However, from the moment I entered until I left, I had to keep picking my jaw up off the ground.

That was Philip Carter’s objective. Carter is the president of Christian Custom Homes and is bringing a new level of luxury homebuilding to Frisco. His firm was just won three of the 2017 Dallas Builder’s Association ARC awards: Best New Build over $2 million, Best Kitchen, and Best Closet.

(more…)