Independent Forensic Expert Concludes Allegations of ‘Falsified Accounting Records’ Are Unsupported
AUSTIN, TX / ACCESS Newswire / April 23, 2026 / GVA Property Management, an Austin-based multifamily real estate investment and operating company, today announced that a preliminary expert report prepared by Jason S. Flemmons, CPA, CFE, CFF – a former Deputy Chief Accountant of the SEC’s Division of Enforcement – has concluded that GVA’s accounting practices are consistent with applicable IRS rules and do not constitute evidence of falsified records.
The report was prepared in connection with a lawsuit filed by Hill Country Hillside Ltd., River Retreat 1228 LLC, Hill Country Meridian LLC, and Sierra HC LLC – entities associated with Bryan Kastleman – in the 455th District Court of Travis County, Texas. The plaintiffs allege that GVA “systematically and routinely reclassified bad debt” to fraudulently inflate revenue and financial metrics reported to investors.
Flemmons, a Senior Managing Director at Ankura Consulting Group with more than 30 years of experience in forensic accounting, analyzed bad debt accounts across multiple GVA properties – including Bridgepoint, Creek’s Edge, and 86 North & 150 West – for the time periods cited by the plaintiffs. His findings were unequivocal.
The report states: “The bad debt reclassifications cited by the Plaintiffs represent the reversals of previously automatically generated journal entries that are consistent with IRS rules. Plaintiffs do not offer any explanation or evidence that these reclassifications are in contravention of applicable accounting standards and therefore improper.”
Under IRS rules, bad debt expense cannot be recognized until an entity has demonstrated that a debt is worthless and collection efforts have been exhausted. GVA routinely sent unpaid tenant balances to collections, making an immediate write-off inconsistent with the applicable tax-basis accounting framework.
Flemmons further confirmed that year-end trial balances provided to investors matched those provided to GVA’s tax preparer, and that no tax audits had identified any issues with GVA’s treatment of bad debt.
“This is what we’ve said from the beginning – our accounting followed the rules,” said Alan Stalcup, founder and CEO of GVA. “A former Deputy Chief Accountant of the SEC’s Division of Enforcement has now reviewed the records, reviewed the entries, and confirmed exactly that. The allegations of falsified records are not supported by the evidence. They never were.”
“Mr. Flemmons’ credentials speak for themselves – 12 years at the SEC, work on some of the highest-profile financial reporting investigations in the country, and a principal author of the AICPA’s forensic accounting standards,” said Isaac Budnik Villarreal of Budnik & Reed PLLC, counsel for GVA. “His conclusion is clear: GVA’s bad debt accounting is consistent with IRS rules. The plaintiffs’ claims mischaracterize routine, system-generated entries as fraud. That narrative does not hold up under expert scrutiny.”
The Flemmons report marks the second time an independent review has dismantled claims originating from data provided by Zac Richards, a former GVA employee fired for cause. In the Overwatch Fund litigation – dismissed with prejudice by the Travis County District Court in 2025 – Richards supplied a spreadsheet alleging that GVA and Stalcup had transferred at least $100 million into trusts to defraud creditors. Overwatch investigated the claim through discovery at both the trial and appellate court levels. A signed, notarized affidavit from Overwatch Fund principal Ben Loughry confirmed that the fund “was unable to identify any evidence supporting Mr. Richards’ allegations” and that the $100 million claim was fabricated.
The plaintiffs in the current lawsuit – entities associated with Bryan Kastleman – rely on the same source. Richards’ stolen and altered documents form the foundation of their allegations that GVA falsified accounting records. Flemmons’ expert analysis now confirms that the specific accounting entries cited by the plaintiffs are routine, system-generated, and consistent with IRS rules – not evidence of fraud.
Between the Loughry affidavit and the Flemmons report, the two central pillars of the Richards-sourced narrative – a $100 million fraudulent transfer scheme and falsified accounting records – have both been independently examined and found to be without merit.
About GVA Property Management
GVA is a commercial real estate operator and investor specializing in multifamily apartment communities across the Southeastern United States and Texas markets. GVA was founded with a mission to make a positive impact on communities, deliver strong returns for investors, and provide exceptional career opportunities for employees.
Contact:
Michael Oberrender
512.497.0797
moberrender@gvamgt.com
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SOURCE: GVA Management
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