A San Antonio real-estate executive admitted in February that he raised more than $69.5 million from roughly 345 investors through false promises about risk, returns and his own participation. The plea is not new this week, and the date belongs in the headline. Its mechanics remain relevant to retirees considering private real-estate deals that appear to own genuine properties while moving investor money between projects.
Seventeen Offerings Gave the Operation a Tangible Surface
Devin Ward Elder founded and ran DJE Texas Management Group. From January 2023 through March 2025, the company offered 17 investments involving apartments, industrial flex space, land, commercial projects and an “Income Fund,” according to the U.S. Attorney’s Office for the Western District of Texas. Fourteen offerings acquired real property through separate limited-liability companies.
Real assets can make a private deal feel self-verifying, but owning property does not prove that investor statements, distributions or valuations are accurate. Each entity may have different debt, cash needs and ownership terms. An investor needs documents tying the subscription to a particular entity, property and priority in the capital structure rather than relying on the sponsor’s portfolio-level presentation.
Payments From Other Projects Imitated Investment Performance
Elder admitted promising high returns with low risk and telling investors he would put in his own money. Prosecutors said he also used money from investors in one project to make interest payments to investors in another without disclosing the source. During the 26-month scheme, investors received about $8.8 million presented as interest and principal, although many payments came from other investors rather than operating returns.
A distribution is therefore evidence of cash movement, not necessarily profit. Private-placement investors should ask for property-level operating statements, rent rolls, debt statements and bank records showing where a payment originated. Audited financial statements and independent administration do not eliminate risk, but they reduce the sponsor’s ability to make one project’s new capital look like another project’s income.
The Breakdown Arrived When Payments Stopped
In March 2025, Elder halted interest payments and told investors the businesses were in financial trouble, projects would not be completed and a large portion of their money could be lost. That sequence is common when cross-funded payments depend on continual fundraising. Once new capital slows, the apparent stability disappears because the underlying projects are not producing enough cash…