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 am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.

LATEST NEWS AND ARTICLES

1784829196 Law
July 23, 2026
Cresset Sues Former Advisor Over Alleged Client Solicitation and Competing RIA Launch

Cresset Capital Management has filed a lawsuit in Illinois state court against a former advisor, alleging that he began building a competing registered investment advisory firm and soliciting clients while still employed by the Chicago-based wealth management firm.

1784733625 Law
July 22, 2026
Barred Oregon Financial Advisor Pleads Guilty to $1.6 Million Investment Fraud

A former Oregon financial advisor has pleaded guilty to fraud after admitting to a long-running scheme that caused investors to lose more than $1.6 million.

1784649161 Law
July 21, 2026
Merrill Lynch Settles Another NFL Player's Claim Related to Financial Advisor Isaiah Williams

Merrill Lynch has agreed to pay $1.25 million to resolve claims brought by former NFL player Sean L.