Dallas, Texas (NEWS RELEASE) – A Dallas man has been indicted by the federal government for allegedly defrauding a Chinese investor out of more than $26 million, Chad E. Meacham, U.S. Attorney for the Northern District of Texas, has announced.
Timothy Lynch Burton, 59, president of real estate developer JMJ and CEO of real estate investment firm Carnegie Development, was indicted Tuesday on seven counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. it was done. securities fraud. He made his first appearance today before U.S. Justice of the Peace David L. Horan.
According to the indictment, Mr. Burton traveled to Hangzhou, China, to pitch real estate investment opportunities in Texas to Chinese investors.
In a presentation highlighting his ties to U.S. politicians, Mr. Burton allegedly claimed the property in question was in a popular neighborhood in the Dallas-Fort Worth Metroplex. He referred a builder identified as SW in court documents. He claimed to buy the site and build on it in order to sell it to future homebuyers.
Burton is said to have promised investors two years of annual interest payments, followed by a return of the initial investment at the end of the second year. He is said to have claimed that investors would donate his 80% of the funds needed for the project, with the remaining 20% he and others donating. Burton is also said to have indicated that no fees will be paid out of investor funds.
In loan agreements signed by investors, Mr. Burton allegedly inflated the price of each property by as much as 195% and, in some cases, never actually purchased the property. Burton is also said to have paid interest to early investors on investment funds from later projects.
In defiance of the loan agreement, Burton allegedly paid a fee out of the investor’s money and channeled the investor’s money into unrelated projects. Still, other funds were also used to pay consultants and her AmEx bills for unrelated companies. The investor lost more than $26,000,000 of his money in the scheme, according to the indictment.
An indictment is merely an allegation of criminal conduct, not evidence. Barton is presumed innocent unless proven guilty in court.
If convicted, he faces up to 20 years in federal prison for each count of wire fraud, up to 20 years in federal prison for conspiracy to commit wire fraud, and up to 20 years in federal prison for securities fraud. It will be.
He is also the subject of a parallel civil lawsuit filed by the U.S. Securities and Exchange Commission.
The Dallas field office of the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Lenny Hunter is prosecuting the case.
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