Few falls in Texas real estate’s recent history have been as swift or severe as DJE’s.
Federal investigators are targeting DJE Texas Management Group’s land holdings in a sweeping money laundering and wire fraud probe, intensifying the syndication shop’s unraveling, the San Antonio Business Journal reported.
The U.S. Attorney’s Office filed for a warrant last week to seize roughly 1,000 acres of land tied to DJE and its sole owner, Devin Elder. The properties lie across six South Texas counties, including Bexar and Comal. The U.S. Attorney’s Office declined to provide details on the sealed investigation.
The motion, still pending a judge’s signature, marks a major update in the forward direction for the FBI’s ongoing investigation. The targeted properties include an industrial building on the city’s South Side and the long-vacant Leeds Building downtown, which Elder had once planned to turn into a bar and coworking space. Most are undeveloped parcels DJE acquired in recent years as part of a pivot from apartment deals to rural land sales.
The forfeiture effort follows months of turmoil for DJE, which paused investor distributions in February and brought on Fort Worth-based Max Wayman & Associates in April to manage an asset selloff. Wayman’s firm specializes in distressed companies facing civil or criminal scrutiny under the tax code. Elder stepped back from operations and told investors not to expect immediate returns.
Prosecutors have yet to unseal the details of the case, but court records show an FBI special agent submitted a sealed affidavit supporting the seizure. Elder is not named in the warrant filing, but corporate filings and land records confirm he is the sole beneficiary of the affected entities.
The firm is also facing multiple lawsuits from investors who allege breach of contract and of fiduciary duty.
DJE defaulted earlier this year on an $18.25 million loan tied to its flagship Travis Building redevelopment, a downtown adaptive reuse project that was scheduled for foreclosure in May. DJE had used PACE financing on the building and marketed it as a high-efficiency showcase.
— Judah Duke
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