Federal investigators have zeroed in on an Austin real estate owner as a wave of investor lawsuits alleges roughly $100 million was siphoned from apartment funds. The suits and court filings describe alleged bookkeeping tricks, large personal withdrawals, and a portfolio that later slid into defaults and foreclosures.
Court documents show the U.S. Securities and Exchange Commission served a subpoena in October on law firm Jackson Walker LLP for documents and the transcript of a deposition with Alan Stalcup, and a Texas judge ordered those records turned over to law enforcement, according to the Austin American-Statesman. The filing suggests the SEC is investigating potential securities fraud tied to offerings used to finance GVA’s acquisitions. Attorneys for Stalcup and GVA did not immediately respond to requests for comment, court filings show.
At the center of the litigation are a half-dozen civil suits filed in Texas and New York that accuse Stalcup and affiliated entities of “cooking the books,” inflating rental income, reclassifying expenses as capital improvements, and packaging bad debt as assets to juice valuations and fees, according to The Real Deal. Plaintiffs say the alleged bookkeeping moves were used to secure higher management fees, attract refinances, and draw new capital into additional funds…