In my last update, I noted that several negative headlines and lawsuits have circulated regarding GVA and me personally. This update is intended to address those matters directly and provide clarity around what is fact, what is allegation, and what has already been resolved.
Are the headlines true?
Over the past year, a small number of lawsuits, and the much larger amount of media coverage surrounding them, have created narratives that do not reflect reality. Court filings can make for dramatic headlines, even when claims are unproven, incomplete, or ultimately dismissed. Headlines travel faster than facts.
I believe our investors deserve clear, direct answers. Here are the most common questions I’ve received, with straightforward answers on what’s being said, what’s true, and what’s resolved.
Why didn’t you respond to media inquiries for over a year?
Looking back, I wish I had.
During that period, I was entirely focused on stabilizing the portfolio, protecting operations, and preserving investor equity during an unprecedented market dislocation. Our growth had always been referral-driven, and we operated with a practice of direct communication and open access for investors rather than media engagement, advertising, or public commentary.
In hindsight, I underestimated how quickly silence can become its own narrative, and I should have taken control of it sooner.
Did you conceal material loan information from investors or lenders on any deal?
No. Quite the opposite.
Every investment was supported by a business plan, and every investor had continuous access to detailed financial information through an online portal, including monthly reporting and full general ledger access for each entity.
Allegations suggesting concealed information are false and unsubstantiated. Similar claims raised in earlier investor lawsuits were dismissed with prejudice and without any settlement payments.
Are you hiding assets in trusts to evade creditors?
No. This claim is categorically false.
There is no such trust, no record of any such transfer, and I have never established a trust or transferred funds to one. Allegations suggesting otherwise have already been dismissed with prejudice and without settlement payments. You can review the Dismissal of all claims against GVA in the Overwatch Fund Lawsuits.
Why did you sell a personal aircraft in late 2023?
As market conditions deteriorated, I made increasingly conservative personal financial decisions so I could support the business during a prolonged downturn.
That included liquidating personal assets to help cover $25 million in property-level operating expenses and debt service as part of our broader effort to stabilize assets and protect investor interests.
How do you respond to allegations of lender fraud or misconduct?
These allegations are false and unsubstantiated.
They reflect attempts to shift market losses, stemming from risks that were clearly disclosed, understood, and accepted — onto the borrower after property values collapsed. In multiple instances, courts have required plaintiffs to produce evidence supporting their claims after failing to do so voluntarily.
What is more concerning, and broader than GVA, is an emerging trend where market participants attempt to retroactively rewrite non-recourse loan terms through novel legal maneuvering. Allowing that precedent would fundamentally alter commercial real estate lending and capital markets far beyond this portfolio.
What is the “Cooking the Books” lawsuit really about?
This litigation arose after market risk unfortunately materialized due to the unprecedented economic challenges posted by the pandemic and subsequent inflation and interest rate hikes.
Rather than accepting those market outcomes, the Kastleman Parties pursued a strategy of malicious opportunism, relying on personal and reputational attacks to shift responsibility for market-driven losses. You can see our Counterclaims which reference a documented criminal history.
GVA operated its business with integrity and transparency. Like any investment platform, it involved risk, but GVA did not engage in deceptive, fraudulent, or criminal conduct.
By contrast, my wife and kids have been subjected to an appalling and unlawful harassment campaign for months. We are working with law enforcement to pursue legal charges for impersonation and the distribution of fake communications aimed at frightening and publicly humiliating my family. I’ve included links to the relevant public records, such as a filed 202 petition, Austin Police report, and Grievance Complaint, so you can review the facts directly.
A broader perspective
It is said that “Victory has a thousand fathers, and defeat is an orphan.”
Out of 509 investors and 27 lenders across more than 200 transactions, the vast majority have either exited successfully or remain engaged today. A small number of parties, unwilling to accept the outcomes of a systemic collapse in the floating-rate multifamily sector, have instead pursued litigation in an effort to recoup individual losses.
The allegations may generate headlines, but the facts tell a different story. Claims of hidden trusts, concealed information, or fraudulent conduct have not held up under scrutiny. Every investment was structured transparently. Every investor was SEC-accredited and understood the risks. All investors and lenders had ongoing access to detailed financial reporting.
I’ve felt the weight of this period alongside our investors. I’ve taken significant losses, I’ve contributed personal capital, and I remain committed to operating with transparency, integrity, and accountability.
In the next update, I’ll share the key lessons learned from this period.
Thank you,
Alan Stalcup
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