ST. LOUIS — A former employee of a once-prolific city developer is alleging the company misled investors and then fired him after he blew the whistle on the deceit, according to a lawsuit recently filed.
Steve Mabry was a director of asset management for ºüÀêÊÓƵ-based Green Street Real Estate Ventures, known for its apartments in The Grove and its redevelopment of The Armory in Midtown.
Mabry alleges he discovered wrong or misleading accounting in 2022 that made Green Street’s finances appear better to investors, according to a lawsuit filed in ºüÀêÊÓƵ Circuit Court. Mabry alerted company leaders and refused to present the information to investors, the suit says. A little over a month later, he was fired.
Mabry did not respond to a request for comment.
Green Street CEO Phil Hulse on Wednesday vehemently denied the allegations. The company’s financial statements undergo “rigorous audits and/or internal reviews to ensure accuracy and transparency,†he said in a statement.
People are also reading…
“The implication that Green Street provided false information to investors is categorically false,†Hulse said. “We take any accusations of financial mismanagement seriously and have mechanisms in place to ensure our investors have access to accurate and timely information.â€
The lawsuit is one of more than two dozen that have been filed against Green Street over the past year as financial problems have stacked up. Contractors have sued, alleging their work went unpaid. Numerous employees have left or been laid off. The company faces pushback from City Hall due to Green Street’s unpaid taxes.
And just Monday, an investor filed a separate lawsuit alleging Green Street, Principal Kevin Morrell and Hulse owe him $2.9 million.
As a director of asset management, Mabry’s responsibilities included communicating with investors and persuading more to invest in the company, the lawsuit says.
As he was preparing a presentation for investors in fall 2022, Mabry alleged financial data he received made Green Street’s assets look bigger or more desirable and its liabilities look smaller to investors. The suit contends that he informed the chief operating officer, controller and company accountants about the “misrepresentations.â€
Mabry alleges the accountants and controller confirmed the financial data was misrepresented and that it couldn’t be presented to investors. He contends that he met with Morrell, the Green Street principal, on Oct. 6 and “blew the whistle†about the financial data as well as “other company wrongdoing and illegal activity†he was instructed to perform, such as illegally charging commercial tenants taxes at a Market Street property.
Mabry told Morrell that he refused to invoice tenants the illegal charges, the suit says, which Morrell “acknowledged.â€
But shortly after that meeting, Mabry’s duties were given to younger, female employees. And on Nov. 18, he was fired, court documents say.
The suit alleges that Green Street “in fact did disclose and publish to investors the accounting misrepresentations despite Steve’s warnings and refusal to participate in the wrongdoing.â€
No further details about the financial data was included in court documents.
Mabry also contends that the company used Mabry’s wife’s social security number on his wage and tax statement and that it affected his ability to apply for and receive Social Security benefits.
Hulse, in his statement on Wednesday, said the decision to terminate Mabry’s employment was “based solely on his job performance, not as retaliation for any claims he alleges to have made,†Hulse said. “Green Street upholds the highest standards of accountability and transparency, and any decision regarding employee termination is taken with serious consideration and legal advice.â€
Hulse said employees are responsible for providing accurate information and that the company would not have access to that data.
“Green Street is fully prepared to address these allegations in court and is confident that the facts will vindicate our position,†Hulse said. “We regret that Mr. Mabry has chosen this path.â€
Editor’s note: This story has been updated with a statement from Green Street Real Estate Ventures.