A
tangled web of deceit has been spun by CCG Capital Group, a real estate lender that promised investors high returns but allegedly delivered a Ponzi scheme instead. According to a scathing forensic report by Greg Milligan, the court-appointed receiver overseeing the wind-down of CCG's Pride of Austin High Yield Fund I LLC, the company used new investor money to prop up earlier investors, a classic hallmark of a Ponzi scheme.

    The report paints a picture of widespread mismanagement and self-dealing at CCG. Founder Robert Buchanan allegedly began paying 8% returns to early investors before even closing a loan, and distributed accounting profits that far exceeded actual earnings. Investor funds were also used to finance Buchanan's personal projects, including a $463,000 loan for his home construction that was never repaid.

    The report alleges that CCG failed to file tax returns from 2016 through 2023, and that accounting activity dropped off significantly in 2015 despite continued distributions to investors. The company also allegedly maintained two sets of loan schedules, one of which omitted insider loans from investor-facing documents.

    Buchanan is cooperating with the sale of fund assets, but disputes the report's findings. Thirty-seven creditor claims totaling $10.1 million have been filed, and Milligan says no final decision has been made on potential recovery for investors. The court will eventually approve a distribution plan once the fund's assets are fully monetized.