Real Estate CEO Admits to Defrauding 345 Investors in $69.5M Ponzi Scheme

Scheme Unravels After Two-Year Run

Devin Ward Elder, the 47-year-old founder and CEO of DJE Texas Management Group LLC, pleaded guilty to orchestrating a massive $69.5 million Ponzi scheme that defrauded 345 real estate investors . The elaborate fraud operated between January 2023 and March 2025, spanning 17 different real estate investment offerings that promised high returns with minimal risk.

Elder's San Antonio-based investment firm, formed in March 2015, employed dozens of people and presented itself as a legitimate operation investing in apartments, industrial workspace units, and commercial building projects. Elder repeatedly promised victims high returns and minimal risk while claiming he would "co-invest" his own money alongside theirs .

The scheme collapsed in March 2025 when Elder halted all interest payments and notified investors that his businesses were experiencing financial difficulties, projects would not be completed, and they should expect to lose a large portion of their investments .

Classic Ponzi Operations Exposed

Federal investigators revealed that Elder operated in "classic Ponzi fashion," making interest payments to investors of one project using investor funds from other projects without disclosing the nature or source of those payments . Over the 26-month life of the scheme, investors received approximately $8.8 million in payments that Elder claimed were "interest" and "principal" payments, when in reality many consisted of investments from other funds rather than actual returns .

The fraudulent operation relied on a steady stream of new investors to pay earlier ones, a hallmark of Ponzi schemes that inevitably collapse when new money stops flowing in. Elder's misrepresentations extended beyond false promises of returns to outright lies about his personal financial involvement in the projects.

Legal Consequences and Investigation

Elder was charged with wire fraud on January 28 and entered his guilty plea in federal court on February 17 . He faces a maximum of 20 years in federal prison, with sentencing scheduled for the week of June 2 . A federal district judge will determine his sentence after considering federal sentencing guidelines and other statutory factors .

The FBI conducted the investigation while Assistant U.S. Attorneys William R. Harris, Steven Seward and Ray Gattinella are prosecuting the case . The swift legal action demonstrates federal authorities' commitment to pursuing complex financial fraud cases that devastate individual investors.

Broader Impact on Investment Trust

This case highlights the vulnerability of individual investors to sophisticated fraud schemes, particularly in the real estate sector where complex transactions can obscure the true nature of operations. The sheer scale—345 victims across multiple investment offerings—demonstrates how quickly fraudulent schemes can expand when they appear legitimate on the surface.

Elder's case serves as a stark reminder that promises of high returns with low risk should trigger immediate skepticism. The collapse of his scheme leaves hundreds of investors facing substantial financial losses, underscoring the critical importance of thorough due diligence and regulatory oversight in private investment markets.