James Elton "Jim"Warr: Indicted

Apr 27

James Elton "Jim"Warr of Austin was indicted April 27 in Travis County for allegedly stealing more than $1 million from investors who bought investments in a program based on real estate notes and loans. Warr was indicted on charges of theft, securities fraud, money laundering, and misapplication of fiduciary property.

Warr sold investment contracts in unregistered real estate notes offered by Warr Investment Group (WIG). The notes were supposedly backed by income-producing properties, but according to the indictment Warr didn't intend to purchase notes that would generate sufficient revenue to pay investors the returns he promised.

Warr also did not disclose to investors that previous investors' funds in WIG were not used to purchase real estate notes and that some funds were used to pay his personal expenses.

The Deputy Securities Commissioner of Texas entered an Emergency Cease and Desist Order against Warr and WIG in 2010. In 2011, a Travis County state district court appointed a receiver to take control of WIG and a related company.