Developer accused of defrauding elderly Texans of millions in bogus real estate investments

Phillip Michael Carter of Frisco was arrested Tuesday, November 13 on state fraud charges. He’s accused of raising $17.5 million from nearly 100 Texas investors, many of them elderly, for real estate development projects in North Texas, announced the Texas State Securities Board in a news release Wednesday afternoon.

Phillip Carter and Richard Gregory Tilford of Arlington were indicted November 6 in Collin County on charges stemming from their sales of fraudulent real estate investments, primarily in the form of promissory notes, the State Securities Board said.

Tilford raised $6 million from investors. Carter is the principal of 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. Instead, Phillip Carter allegedly used investor funds for unrelated purposes, including paying personal expenses and satisfying a personal IRS tax lien.

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