Warr Investors To Get One-Third Of Money Back
The Texas State Securities Board issued a News Release on October 17, 2011 announcing that investors with the Warr Investment Group LLC out of Austin, Texas would get about one-third of their money back. Investors handed over some $1.1 million to Warr and his companies to be invested.
According to the news release, James Elton Warr and his company, Warr Investment group LLC, had been involved in a fraudulent real estate investment scam that promised an annual return of 8% to investors. The investments were promoted as being safe alternatives to investing in the stock market. Unfortunately, the firm was forced into receivership earlier in 2011 after going bust. The State Securities Board investigation revealed that Warr is alleged to have violated state and federal securities laws by offering to sell unregistered securities and fraud by making materially misleading statements about the securities that were likely to deceive potential investors.
The assets of Warr Investment Group LLC and Warr International Group LLC are going to be distributed amongst the forty-three investors, pursuant to an October 13, 2011 Order signed by Travis County District Judge Amy Clark. It is anticipated that the initial money will be distributed within the next couple of weeks, with additional distributions expected as more assets are liquidated.
As in nearly every securities fraud case, Warr used investors’ money to his own use for fine dining, credit cards, travel expenses, a Mercedes Benz and paying unregistered agents’ commissions