Al Hartman, founder and former chief executive of Silver Star Properties, says a breakdown in corporate governance under interim leadership led to the collapse of the company’s culture, internal controls, and shareholder value, costing investors more than 70 percent of their holdings.

Hartman, who built Silver Star into one of the nation’s top-performing commercial real estate operators, alleges that decisions made after his removal as CEO allowed authority to consolidate in the hands of interim chief executive Gerald Haddock, undermining long-standing oversight practices and accelerating the company’s decline.

Haddock was first introduced to Hartman in 2018 as an outside advisor through a board referral from longtime director Jack Tompkins. At the time, Hartman said, Haddock had no role in company strategy or operational decision-making. That changed following a merger in 2020, when Haddock joined the board.

Hartman said he was not informed of key aspects of Haddock’s prior professional history at the time. According to Hartman, Haddock presented a positive account of his background while failing to disclose that his tenure at Crescent Real Estate ended after a significant stock decline and subsequent unsuccessful litigation against the company.

Public records show Crescent shares fell more than 30 percent during Haddock’s three-year tenure in the late 1990s. Haddock was later terminated and lost two lawsuits he filed against Crescent.

Hartman said no significant concerns surfaced while Haddock served in a limited advisory capacity. Problems, he said, emerged after Haddock began exerting influence from the board and later assumed the interim CEO role following Hartman’s departure in 2022.

Former employees and executives later told Hartman that Silver Star’s workplace environment shifted sharply during that period. According to Hartman, multiple employees described being intimidated, accused of dishonesty, and warned of potential personal litigation if they questioned leadership decisions.

Under Hartman’s leadership, Silver Star was widely recognized for its corporate culture and operational performance. The company reported a Net Promoter Score above 70 in 2022, ranking it among the highest-performing commercial real estate operators in the United States, according to disclosures filed with the U.S. Securities and Exchange Commission. Those filings described a management structure built around decentralized decision-making, financial transparency, and tenant-focused operations.

Hartman said that structure did not survive his exit.

“Every safeguard we had in place was removed,” Hartman said. “The culture was eliminated entirely.”

During Hartman’s tenure, Silver Star followed standard public REIT governance practices, including quarterly financial reporting and a clear separation between board oversight and executive management. Hartman alleges that after his departure, those controls weakened, allowing Haddock to consolidate authority.

According to SEC filings, a 3-to-1 stock distribution in May 2025 tripled Haddock’s personal holdings from one million to three million shares while excluding approximately 20 percent of other shareholders. The same filings show Haddock received compensation and stock awards during a period in which Silver Star’s overall valuation declined by more than 70 percent.

Leadership turnover accelerated as well. Between 2023 and 2025, two chief executives and two independent general counsels departed the company. Both CEOs resigned without notice after only a few months in the role, departures Hartman described as further evidence of governance instability.

Operational metrics also declined. Property occupancy dropped from 83 percent to 56.7 percent during the same period, according to additional SEC disclosures.

“These are not subjective outcomes,” Hartman said. “They are documented results.”

Hartman emphasized that none of the employee complaints he later received involved conduct that occurred while he was CEO. At that time, he said, Haddock was not involved in daily operations. Employees only began raising concerns after Hartman left, with several reporting fear of retaliation if they challenged leadership.

Hartman also said he later learned Haddock had engaged in private conversations with senior executives while Hartman was still leading the company, interactions Hartman said were never disclosed to him and only came to light after his removal.

Asked whether the events at Silver Star resembled Haddock’s earlier business disputes, Hartman said the similarities became difficult to ignore.

“There is a pattern,” he said. “It is not limited to one company.”

Public records reflect similar outcomes at Crescent, where Haddock’s tenure ended amid declining share value and litigation. At Silver Star, shareholders are now facing steep losses, delayed meetings, and ongoing legal disputes.

Hartman, who grew Silver Star from a start-up into a nationally recognized commercial real estate firm with one of the strongest performance records in the sector, is now working with shareholders to replace the board and stabilize the company. His stated goal is no longer expansion, but preservation.

“My focus is protecting what remains of shareholder value,” Hartman said. “That means restoring proper governance, installing credible leadership, and pursuing an orderly liquidation process that prioritizes investors.”

Hartman said the experience underscores the risks even mission-driven companies face when oversight fails and authority goes unchecked.

“Strong values don’t replace governance,” he said. “If leadership controls both the board and management, the damage can happen quickly.”

He said he hopes the next phase for Silver Star will bring accountability and allow investors to recover as much capital as possible after what he described as a devastating period for the company.