- 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.
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.
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…)