Federal investigators have closed their fraud inquiry into StoryBuilt, a collapsed Austin real estate firm, after Justice Department officials chose not to pursue charges. The decision leaves investors holding more than $130 million in unpaid claims with no criminal case against the developer.
The FBI’s San Antonio field office confirmed the closure through a September 11 victim notification email obtained by the Austin American-Statesman. Prosecutors declined to bring charges related to the company’s 2023 collapse, which left hundreds of millions in debt and accusations of mismanagement across multiple states.
StoryBuilt, formerly known as PSW Real Estate LLC, focused on infill residential projects in Austin and other major cities. Once claiming a $2 billion portfolio, the company fell into receivership in August 2023 after investors demanded court intervention.
A court-appointed receiver, Stapleton Group, reviewed financial records and reported concerns about fraudulent transfers to law enforcement. The receiver alleged executives used fresh capital to pay earlier debts, shielded larger investors while smaller ones absorbed disproportionate losses, and recruited unaccredited investors in later funding rounds.
Those practices drew comparisons to a Ponzi scheme, where money from new investors funds payouts to earlier backers. Stapleton Group has pursued dozens of clawback lawsuits seeking to recover payments made while the company was insolvent. So far, collections have reached only $82,000, far short of the estimated $4.5 million recovery target.
Investor Joe Davis, who put $50,000 into StoryBuilt, said he could absorb the hit to his retirement accounts. But he noted many others invested entire IRAs and savings.
Ryan Diepenbrock, a co-founder and former executive, said he was unaware of the FBI investigation and welcomed its conclusion. He called the allegations unfounded and accused the receiver of distorting information to serve its own interests.
Diepenbrock filed suit against Stapleton Group in 2024, claiming the receiver intentionally damaged the company. That case nearly got dismissed over missed deadlines but remains pending.
Stapleton Group did not respond to requests for comment. The FBI declined to confirm or deny the investigation.
