U.S. Securities and Exchange complaint
Barton made his initial appearance before U.S. Magistrate Judge David Horan Monday, according to the release, which provided a link to theearlier today. He was granted an appearance bond on the condition that he surrender his passport; restrict his travel to within Texas unless given specific permission to leave the state; avoid contact with potential victims, witnesses and co-defendants; and not open new lines of credit, among other requirements.
Barton allegedly claimed that the investors would contribute 80% of the funds needed for the projects, he and others would put in the remaining 20%, and no commissions would be paid out of investor funds, according to the indictment. During his presentations, Barton introduced a builder identified in the indictment as “S.W.,” who he claimed would buy lots to build on to sell to future home buyers, the indictment says. Stephen Wall, described in the suit as a Texas-based homebuilder with over 30 years of experience in the industry, as one of Barton’s partners in the alleged scam.