The U.S. Securities and Exchange Commission headquarters in Washington D.C.. Court documents suggest the agency is investigating an Austin businessman.
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The U.S. Securities and Exchange Commission is investigating the owner of an Austin-based real estate company for fraud.
The probe comes amid multiple lawsuits alleging Alan Stalcup, through his GVA Property Management and other companies, uses his portfolio of apartment buildings as a personal piggy bank to finance a high-flying lifestyle. The half dozen suits filed in Texas and New York allege fraud to the tune of $100 million, affecting possibly hundreds of victims.
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Jackson Walker LLP, a law firm representing a family suing over alleged fraud, was served a subpoena by the federal agency in October demanding documents and its transcript of a deposition with Stalcup.
“Based on the SEC subpoena, it appears the SEC is investigating Mr. Stalcup for securities fraud,” the firm said in a motion requesting that the court approve the release.
A Texas district judge subsequently ordered the documents be turned over to law enforcement.
SEC policy bars the agency from confirming the existence of an investigation in most cases.
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Attorneys for Stalcup couldn’t be reached for comment.
He and his companies own or operate about 150 apartment buildings across the nation. They include properties in Austin, San Antonio and Dallas and the company says it also has properties in Kentucky and Tennessee. Over the years, GVA has operated in nine states, acquired 43,000 units and done $10 billion in transactions, it says.
Its business model is purchasing multi-family buildings for middle- and lower-income residents and making improvements in hopes of increasing revenue through better marketing and reduced vacancy rates. Once made successful, the properties could potentially be sold at a profit.
Many of Stalcup’s purchases of apartment complexes are financed with securities registered with the SEC.
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In a Nov. 5 filing in one of the suits, attorneys for investor Brian Kastleman alleged widespread impropriety among Stalcup’s companies including the years-long manipulation of the books and using investor funds as a “personal piggy bank.” The lawsuit said plaintiffs stand to lose $15 million on the deal and that Stalcup’s behavior is criminal.
Citing internal company documents, the suit alleges one business account saw tens of millions of dollars flow through it for a GVA company “while also using this same account to execute over $38.6 million in purely personal transactions, including payments for jewelry, luxury automobiles, private jet travel, yacht charters, personal lines of credit, and investments in cryptocurrency-related funds.”
They allege a near-shell game of money movements through various company accounts that at one time resulted in a $30 million dollar deposit into Stalcup and his wife Loren Stalcup’s personal bank account.
The lawsuit alleges Stalcup instructed staff to falsify documents, inflate the value of properties to disguise negative revenue sources from the balance sheets, instead including them as fictional “bonds” that appeared as line items like capital improvements.
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“In 2023 alone, the GVA Defendants falsely overstated the reported rental income across its entire portfolio by over $20.6 million,” the lawsuit says.
The “cooked books” were used to get higher fees from plaintiffs, refinance with lenders, and entice new investors in new funds for new properties.
Rising interest rates since 2022 complicated the company’s efforts, according to court records. In 2023, it defaulted on multiple property loans, including for the Solara Apartments in San Antonio. The company owned more than 2,000 units in that city at one point.
Stalcup has denied the allegations in various filings and made counterclaims against Kastleman.
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“This dispute is not and never was about fraud, theft or criminal conduct,” Stalcup’s filings say, but rather investors who were disappointed their investments didn’t work out. The documents allege Bryan and Lisa Kastleman’s allegations intentionally damaged the company’s reputation in order to recoup their investment.
Kastleman’s attorney said Stalcup’s claims were frivolous, as evidenced by the inclusion of Lisa Kastleman, his client’s ex wife.
“This is purely a fishing expedition and an attempt to harass Brian and an ex-wife who has nothing to do with this case,” said Ephraim Wernick, an attorney representing Kastleman.
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Another lawsuit filed in July alleges Stalcup fraudulently removed $650,000 from operating accounts for one property and placed it in another, exclusively controlled by Stalcup.
At least one former GVA employee has corroborated claims made by Kastleman and others. Zachary Richards said in court filings that staff were directed to falsify records. Richards worked for the company from 2021 to 2024, according to his LinkedIn.
Stalcup sued Richards for misappropriation of trade secrets and business disparagement.