Tr?id=566623520170033&ev=PageView&noscript=1

SEC Charges Real Estate Developer with Fraud

Posted on October 13th, 2022 at 12:57 PM
SEC Charges Real Estate Developer with Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged a Texas-based real estate developer and two other individuals for operating a fraudulent real estate investment offering that generated at least $26 million from nearly 100 investors.

Developer Timothy Barton partnered with home builder Stephen T. Wall and Michael Fu to convince investors, primarily Chinese nationals, to purchase securities offered by a separate entity, which was controlled by the defendants, according to the SEC. The SEC alleged that Barton and Fu provided investors with offering documents indicating that their investments would be solely utilized to purchase real estate parcels for residential development. Barton and Fu additionally promised investors that their principal would be repaid with interest in two years, according to the SEC.

However, Barton and Fu misrepresented the price paid for the residential developments as three times higher than what the defendants had previously agreed to pay for the properties, according to the SEC. Further, the SEC alleged that the defendants misappropriated nearly all investor funds to make Ponzi-style payments to earlier investors, purchase real estate on behalf of Barton’s other entities, pay sales commissions to Fu, and fund Barton’s personal lifestyle. Development never began on the residential properties and the investors have not yet been repaid, according to the SEC. The SEC is seeking permanent injunctions, disgorgement, and civil penalties against each defendant.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I am so blessed to have you and your dynamic team defending me. Your ethics, forward thinking and strategies are amazing.  You guys are the best group of attorneys in the country that I could hire to handle this complicated case.

Cindy C.

LATEST NEWS AND ARTICLES

1794596228 Law
November 13, 2026
Snowden Lane Partners to Pay $364,590 Over Undisclosed Conflicts and Misleading Client Agreements

Snowden Lane Partners will pay $364,590 to settle Securities and Exchange Commission (SEC) charges that it failed to disclose compensation arrangements tied to client cash sweep investments and margin loans.

1794509056 Law
November 12, 2026
SEC Issues its 2026 Enforcement Report

The Securities and Exchange Commission (SEC) filed 348 enforcement actions in fiscal year 2026, including 235 standalone actions and 113 follow-on administrative proceedings.

1794418115 Law
November 11, 2026
Morgan Stanley Develops AI Super Agents to Build Portfolios and Manage Client Accounts

Morgan Stanley is developing AI-powered "super agents" that could eventually build investment portfolios, manage client accounts and handle many of the routine tasks that wealth management professionals perform today.