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

If you find yourself in trouble with the regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

1782744905 Law
June 29, 2026
Former Arvest Wealth Representative Sanctioned by FINRA Over Improper Use of Mistaken Commission Payment

The Financial Industry Regulatory Authority (FINRA) has suspended former Arvest Wealth representative Brandon Still for 18 months and fined him $5,000 after determining that he improperly used firm funds that were mistakenly deposited into his account.

1782497406 Law
June 26, 2026
FINRA Seeks to Make Remote Inspection Program Permanent

The Financial Industry Regulatory Authority (FINRA) is seeking approval from the Securities and Exchange Commission (SEC) to make its pandemic-era remote inspections program permanent before the current pilot is scheduled to expire in June 2027, according to AdvisorHub and FINRA's summary of its recent Board of Governors meeting.

1782400213 Law
June 25, 2026
SEC Alleges Illinois Investment Adviser Misappropriated Investor Funds and Concealed Losses

According to a litigation release published on SEC.gov, the Securities and Exchange Commission (SEC) has charged John Sterling Myers and his firms, Sterling Capital, LLC and Sterling Capital Management, LLC, with orchestrating a multi-year fraud involving investor funds held in a pooled investment vehicle.