San Antonio CEO Admits to $69.5 Million Real Estate Ponzi Scheme

A Decade-Long Business Crumbles

San Antonio CEO Devin Elder pleaded guilty to orchestrating a $69.5 million Ponzi scheme that defrauded 345 real estate investors, bringing down his investment firm DJE Texas Management Group LLC that had operated since March 2015 and employed dozens of people. "I am so sorry," Elder told victims who attended his Tuesday hearing, adding "What I did was wrong, and I hope that my actions since the beginning demonstrate a complete willingness to get every dollar back that we can."

According to court documents, the 47-year-old Elder fraudulently raised more than $69.5 million from about 345 investors between January 2023 and March 2025 through 17 real estate investment offerings. The firm invested in apartments, industrial flexible workspace units, land projects, commercial building projects and also offered investment in an "Income Fund."

Classic Ponzi Structure Exposed

Authorities said Elder used funds from new investors to make interest payments to earlier investors without disclosing the source of the payments. Over the 26-month scheme, investors received about $8.8 million in payments that Elder described as "interest" and "principal," but in reality, much of the money came from other investors' funds rather than legitimate investment returns.

Elder repeatedly promised victims high returns and minimal risk in multiple material misrepresentations, claiming he would also "co-invest" his own money. He also made interest payments to investors in one project using funds from other projects, without disclosing the source - a popular tactic in Ponzi schemes that investigators described as operating "in classic Ponzi fashion."

The Scheme Collapses

In March 2025, Elder stopped making interest payments and notified investors that his businesses were experiencing financial difficulties, that projects would not be completed and that they should expect to lose a significant portion of their investments. Elder was charged with wire fraud on Jan. 28 and summoned to appear in federal court on Feb. 17, when he entered his guilty plea.

Assistant U.S. Attorney Steven Seward told the judge that it's still unclear how much money can be recovered, stating "I can't make any promises at this time or projections. I can tell you some of the assets are encumbered pretty heavily. Some of the assets are free and clear, so we'll get a better return for those."

Justice and Recovery Ahead

Sentencing is scheduled for June, where Elder faces a maximum of 20 years in federal prison for wire fraud. A federal judge will determine the final sentence after considering sentencing guidelines and other statutory factors.

This case serves as a stark reminder of how sophisticated investment fraud can operate for years while appearing legitimate. The substantial investor losses highlight the critical need for due diligence when evaluating real estate investment opportunities, particularly those promising unusually high returns with minimal risk. As federal prosecutors work to recover assets for the 345 victims, the case underscores the devastating personal and financial impact that Ponzi schemes inflict on everyday investors seeking to grow their savings.