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.
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…)