Tr?id=566623520170033&ev=PageView&noscript=1

Silver Star Properties REIT Investigated by SEC

Posted on July 19th, 2023 at 1:15 PM
Silver Star Properties REIT Investigated by SEC

From the desk of Jim Eccleston at Eccleston Law 

Silver Star Properties REIT Inc. received notice of an investigation by the Securities and Exchange Commission. The SEC’s letter raised concerns regarding the company’s 10-K. The SEC believes the 10-K may be evidence of mismanagement of the company. A specific inquiry includes the significant depreciation of value in the company’s net asset value per share, from $12.08 in 2021 to $6.25 in 2022, among other things.

The SEC advised Silver Star to retain documents and data that may be relevant to the investigation. Specifically, the SEC requested the retention of documents and data related to:

• Silver Star’s purchase of all equity interests in Southern Star Self-Storage Investment Company

• The determination that Silver Star had material weaknesses in controls over the review

• Approval and disclosure of related party transactions and the insufficient design of controls relating to the timing of revenue recognition of estimated recoveries of operating expense items under leasing agreements

The SEC also advised Silver Star to retain documents and data related to key employees including Silver Star’s investigation into “certain violations of fiduciary and other duties to Silver Star by Hartman”, the removal of Allen Hartman as the executive committee of the Silver Star’s board of directors as executive chairman of the company, and the termination of the agreement between Hartman Short Term Income Properties XX Inc. and Mr. Hartman.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

1773851287 Law
March 18, 2026
LPL and Ameriprise Notify Clients of Cybersecurity Incidents Involving Account Access

LPL Financial and Ameriprise Financial Services recently notified certain clients about separate cybersecurity incidents that exposed private information and, in one case, led to unauthorized trading activity.

1773760408 Law
March 17, 2026
Bankruptcy Court Orders Emerson Equity to Produce Records in Inspired Healthcare Case

A federal bankruptcy court in Fort Worth has ordered Emerson Equity to produce documents connected to the sale of private securities issued by Inspired Healthcare Capital, according to InvestmentNews.

1773678753 Law
March 16, 2026
Concorde Investment Services Faces Scrutiny Over Sales of Inspired Healthcare Private Investments

Concorde Investment Services is facing increased scrutiny following the bankruptcy of Inspired Healthcare Capital, whose private investment offerings were widely sold through independent broker dealers, according to InvestmentNews.