Austin-based developer StoryBuilt is facing over 50 lawsuits from court-appointed receiver Stapleton Group, seeking to recover more than $6 million in improper payments made to 76 investors. Stapleton Group alleges that StoryBuilt continued to make payments to certain investors despite being insolvent since January 2021. StoryBuilt, known for its infill development projects in cities such as Austin, San Antonio, Dallas, Seattle, and Denver, had a portfolio valued at $2 billion, a figure Stapleton claims was inflated. The receiver estimates that less than $4 million will be recovered from the clawback claims.
The lawsuits filed in Travis County are part of the nearly $8 million StoryBuilt allegedly made in improper payments to investors. Among the targets, the lawsuits seek more than $675,000 from John Watson, $253,000 from Lon Halvorson, and $396,000 from Shirley Diepenbrock. The receiver stated that they are only pursuing payments above what was invested after the January 2021 insolvency.
In addition to the clawback lawsuits, Stapleton Group is considering taking action against individuals and groups that assisted StoryBuilt in obscuring its financial documents and continuing to raise funds despite its insolvency. The lawsuits also mention that the Justice Department, IRS, SEC, and other investigative bodies are looking into StoryBuilt's business practices.