The Securities and Exchange Commission (SEC) is reportedly investigating the owner of an Austin-headquartered real estate firm for alleged securities fraud.
The Austin American-Statesman reports the SEC probe is aimed at Alan Stalcup, who runs GVA Property Management and other companies that own or operate approximately 150 apartment buildings nationwide. Stalcup’s property acquisitions were financed using securities registered with the SEC.
The probe follows multiple lawsuits against Stalcup that allege fraud at the level of at least $100 million, affecting possibly hundreds of victims. In one lawsuit filed in November, attorneys for investor Brian Kastleman accused Stalcup’s companies of manipulating its balance sheets with false information and using investor funds as a “personal piggy bank” to support Stalcup’s luxurious lifestyle.
“In 2023 alone, the GVA Defendants falsely overstated the reported rental income across its entire portfolio by over $20.6 million,” the lawsuit said. Stalcup denied the allegations and has filed counterclaims against Kastleman.
The SEC did not announce that a probe of Stalcup was in progress. However, Jackson Walker LLP, a law firm representing a family suing Stalcup over alleged fraud, was served a subpoena by the federal agency in October seeking documents and the 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 ordered the documents be transferred to the SEC.
In a statement, Stalcup said he welcomed the SEC’s investigation, stating he and his companies were the victim of “defamatory fictions.”
Photo courtesy of Alan Stalcup’s Facebook page
If this guy is guilty I hope he finds some jail time! There are too many of us in the real estate industry that work hard to do things right and it is the bad apples that make us all look bad!