A San Antonio businessman has pleaded guilty to orchestrating a massive real estate investment scheme that defrauded approximately 345 people out of nearly $70 million. The scheme, which ran for over two years, promised substantial returns but instead used new investor funds to pay earlier participants.
Devin Ward Elder, 47, admitted to one count of wire fraud in federal court on Tuesday. The charge stems from his operation of DJE Texas Management Group, a company he used to solicit investments for real estate projects that ultimately collapsed, leaving hundreds of investors with significant losses.
Key Takeaways
- Devin Ward Elder, 47, pleaded guilty to one count of wire fraud in a San Antonio federal court.
- The scheme involved raising $69.5 million from about 345 investors between January 2023 and March 2025.
- Elder's company, DJE Texas Management Group, promised high returns on real estate ventures.
- The operation functioned as a Ponzi scheme, using new investments to pay returns to earlier investors.
- Elder faces a potential sentence of up to 20 years in federal prison, with sentencing scheduled for June.
Details of the Fraudulent Operation
Court documents reveal that from early 2023 through March 2025, Devin Ward Elder actively solicited funds for his company, DJE Texas Management Group. He presented investors with what appeared to be lucrative opportunities in real estate development, promising high returns with minimal risk.
To build trust and lend credibility to his ventures, Elder allegedly told investors that he was personally co-investing his own capital into the projects alongside them. This assurance was a key part of his pitch to attract a wide range of individuals looking for secure investment opportunities.
Understanding Wire Fraud
Wire fraud is a federal crime that involves using any form of electronic communication, such as email, phone calls, or wire transfers, to execute a scheme intended to defraud someone of money or property. Because this scheme involved communications and fund transfers across state lines, it falls under federal jurisdiction.
However, the promised profits from real estate developments never materialized. Instead, Elder operated what is commonly known as a Ponzi scheme. Money from new investors was not put into legitimate projects but was used to make "interest" and "principal" payments to earlier investors, creating the illusion of a successful and profitable enterprise.
The Scheme Unravels
The operation sustained itself for more than two years through a continuous inflow of new capital. During this period, investigators found that Elder paid out approximately $8.8 million. These payments were not profits from investments but were simply recycled funds from other victims.
Total Amount Raised: $69.5 million
Number of Investors: Approximately 345
Scheme Duration: January 2023 – March 2025
The scheme came to an abrupt halt in March 2025. Elder stopped all payments and informed his investors that his businesses were experiencing severe financial difficulties. According to the U.S. Attorney's Office for the Western District of Texas, he warned them to expect the loss of a "large portion of their investments."
This sudden announcement triggered the investigation that ultimately led to federal charges. The illusion of a thriving real estate investment firm quickly disappeared, revealing a structure dependent on deception.
Legal Proceedings and Consequences
Following a federal investigation, Elder was formally charged with one count of wire fraud on January 28. When summoned to appear in court on Tuesday, February 17, he pleaded guilty to the charge, forgoing a trial.
"The plea agreement confirms that the defendant knowingly devised a scheme to defraud investors by means of false and fraudulent pretenses, representations, and promises."
- Statement from the U.S. Attorney's Office
By pleading guilty, Elder accepts responsibility for his role in the multimillion-dollar scheme. The charge carries a significant penalty, reflecting the severity of the financial harm inflicted on hundreds of victims.
Elder is now awaiting sentencing, which has been scheduled for June. He faces a maximum possible sentence of up to 20 years in federal prison. The final sentence will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines and other statutory factors.
Impact on Victims
The fallout from the $69.5 million scheme extends to the 345 individuals and families who trusted their savings and capital to Elder's company. For many, the promised low-risk, high-return investments represented a path toward financial security, retirement, or other life goals.
The collapse of the scheme means that the vast majority of the invested capital is likely lost. While legal proceedings may include provisions for restitution, recovering funds from a collapsed Ponzi scheme is often a difficult and lengthy process, with victims typically receiving only a small fraction of their original investment, if anything at all.
Federal authorities often advise investors to exercise caution and conduct thorough due diligence before committing funds, especially when investments promise unusually high returns with little to no risk. Such promises are a common red flag for fraudulent schemes.
