The FBI has ended its investigation into Austin-based developer StoryBuilt after the Department of Justice declined to prosecute the company over allegations of fraud and other misconduct, the Austin American-Statesman reported.
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StoryBuilt, which focused on infill developments in Austin and other cities, collapsed into receivership in 2023 amid accusations of financial mismanagement.
The case will remain under court supervision as the Los Angeles-based receiver, the Stapleton Group, continues to seek repayment for creditors and partners. At one point, StoryBuilt owed more than $120M, according to the Statesman. As of April, the receiver has recouped $26M, mostly from asset sales.
Spokespeople for the FBI and Stapleton didn’t immediately respond to requests for comment. StoryBuilt couldn’t immediately be reached for comment.
Stapleton has identified more than 100 investors who potentially received improper payments after the company became insolvent in 2021. Those improper payments allegedly totaled nearly $8M, according to the Statesman.
In June, Stapleton filed more than 50 cases of 76 people and entities seeking to claw back more than $6M paid out by StoryBuilt, according to the San Antonio Express News. Stapleton estimated then that less than $4M could be recovered.
StoryBuilt was founded in 2009 and, in 2023, had a portfolio of developments ranging from seven to more than 800 units in Austin as well as Dallas, Denver and Seattle. When Stapleton took over, it focused mostly on preserving the developer’s assets, according to the Austin Business Journal.
StoryBuilt said in 2023 that its development portfolio was worth around $2B, but Stapleton later disputed this, accusing executives of lacking transparency with accountants. The receiver claimed that executives’ alleged misinformation led to inflated asset values, missing data and misclassified debt.
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