A Dallas man who allegedly scammed Chinese investors out of more than $26 million has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Timothy Lynch Barton, the 59-year-old president of real estate development firm JMJ and CEO of real estate investment firm Carnegie Development, was indicted Tuesday on seven counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of securities fraud. He made his initial appearance before U.S. Magistrate Judge David L. Horan today.
According to the indictment, Mr. Barton allegedly traveled to Hangzhou, China to market real estate investment opportunities in Texas to Chinese investors.
During his presentations – which highlighted his supposed ties to U.S. politicians – Mr. Barton allegedly claimed that the properties in question were located in sought-after neighborhoods in the Dallas Fort Worth Metroplex. He introduced a builder, identified in court documents as S.W., who he claimed would purchase lots to build on to sell to future home buyers.
Mr. Barton allegedly promised investors annual interest payments for two years, followed by the return of their initial investment at the end of the second year. He allegedly claimed that the investors would contribute 80 percent of the funds necessary for the project, and he and others would contribute the remaining 20 percent. Mr. Barton also allegedly represented that no commissions would be paid out of…
