A lawsuit filed in Texas state court alleges that Alan Stalcup, head of real estate syndication firm GVA, engaged in fraudulent financial practices by misrepresenting the company’s finances and misleading investors. The complaint claims that Stalcup, his wife Loren, and former vice president David Graham Bass participated in a pattern of fraud, theft, and deceit.
Stalcup has denied the allegations, describing the lawsuit as “an extortion attempt from a disgruntled investor” and stating his intention to countersue. Bass did not respond to requests for comment.
GVA is known for raising funds from both individual and institutional investors to acquire underperforming apartment complexes. Investors would purchase management interests in shell companies set up by GVA for property acquisitions and pay management fees to GVA.
The plaintiffs allege that after interest rates increased—making it harder for syndicators like GVA to manage debt—Stalcup and others manipulated financial statements. According to the lawsuit, they inflated rental income figures and profits by classifying bad debt, concessions, and operating expenses as assets or capital expenses. This practice allegedly made properties appear more profitable than they were.
“In 2023 alone, the GVA Defendants falsely overstated the reported rental income across its entire portfolio by over $20.6 million, which in turn served to inflate values of the properties in its portfolio by hundreds of millions of dollars,” plaintiffs wrote in their petition.
The suit references internal financial documents indicating instructions within GVA to move money out of certain categories such as concessions and delinquency. One cited example claims a property’s monthly net operating income was artificially increased by $133,558; overall, GVA managed about 150 properties.
Plaintiffs also assert that these alleged actions allowed defendants to charge higher management fees. The group bringing the suit includes Hill Country Hillside Ltd., River Retreat 1228 LLC, Hill Country Meridian LLC, and Sierra HC LLC. At least two are linked with Texas commercial real estate investor Bryan Kastleman. They claim losses exceeding $15 million after investing in ten projects managed by GVA under allegedly false pretenses.
The complaint further alleges that when rising interest rates put pressure on GVA’s finances, Stalcup issued capital calls purportedly intended for stabilizing properties or meeting debt obligations. Plaintiffs say those funds were instead used for personal losses or repaying company bridge loans; one instance cites $3.4 million misappropriated this way.
This is not the first legal challenge faced by Stalcup or his firm. In February 2025, lender Benefit Street Partners accused GVA of misusing insurance proceeds and mixing tenant security deposits with other funds—a situation which could trigger personal guarantees on a $346 million loan backed by 19 multifamily properties. Stalcup dismissed those claims as “farcical and utterly outrageous,” asserting loans had been paid back or remained current; litigation continues.
Additionally, Starwood Capital Group filed three lawsuits against Stalcup this summer alleging unpaid interest payments and accumulation of liens on several properties—claims that could activate further personal recourse guarantees if proven true; these cases are also ongoing.
