SAN ANTONIO – Federal authorities raided a general contractor’s Austin, San Antonio and Plano offices on Aug. 26.
More than a half-dozen eyewitnesses told the Austin Business Journal they spotted around 15 federal and state officers enter Three Barton Skyway, which is located at 1221 South MoPac Expressway, in the morning. The officers were circling in on the office of Plano-based Cadence McShane Construction Co. LLC and left with several boxes and confiscated cell phones, sources said.
Srinath Kasturi, Cadence’s executive vice president for the Austin office, on Aug. 27 confirmed activity at the Austin office, as well as at the San Antonio and Plano headquarters. Kasturi said the incident “involved a government agency obtaining records related to a previous project,” and added that Cadence fully cooperated and provided the requested information. He identified that agency as the U.S. Housing and Urban Development and said no arrests or detainments were made.
Cadence McShane is a prominent general contractor in the area and has worked on some of the region’s most notable projects, including The ’68 luxury apartments at Hemisfair.
It ranked No. 11 on ABJ’s list of largest area general contractors, based on $315.3 million in construction billings in 2025. It reported 79 local employees at the time.
Representatives from the Texas Department of Public Safety on Aug. 27 confirmed they were at the scene assisting HUD, and deferred questions to HUD. HUD officials did not immediately respond to a request for comment. Austin Police Department confirmed it was not involved.
Kasturi confirmed the project in reference is subject to a lawsuit stemming from a complaint from a former employee. He claimed the U.S. Department of Justice chose not to pursue the “substantive allegations.” The U.S. Attorney’s Office did not respond to an Aug. 26 request seeking comment or confirmation on any potential inquiry into the aforementioned allegations.
“We feel very strongly the whole matter is without merit but we have to go through the process. Because the litigation is ongoing, we are unable to comment further at this time,” Kasturi said. “We take pride in our long-standing relationship with the U.S. Department of Housing and Urban Development, built through years of close collaboration. We have a strong track record of successfully delivering HUD-financed affordable housing, including multifamily and senior living projects, and remain committed to that work.”
Read more of this story at the San Antonio Business Journal website.
Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.
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