Kurt Barton, the former CEO of Austin-based Triton Financial, was indicted by a federal grand jury in Austin on Feb. 15 on 33 charges of securities fraud, wire fraud, money laundering, and false statements regarding loans.
Barton faces a maximum of 30 years in prison.
Barton created a series of "false, fictitious and fraudulent limited partnerships,"according to the indictment. He raised more than $50 million from investors who thought they were putting money into real estate partnerships and other Triton investments.
The indictment alleges that Barton consistently lied to investors about how their money was used. He used investors' money to fund a lavish personal lifestyle and prop up Triton investments that were failing, according to the indictment.
The criminal case follows a joint investigation by the Securities and Exchange Commission and the Texas State Securities Board, which started in 2009. The Securities Commissioner revoked Barton's registration in 2010.