BREAKING NEWS
Judge Grants Temporary Sealing Order while Permanent Rule 76a Hearing Pending…compare with Judge Donna Roth’s DENIAL order in 202131657 – SUMMER ENERGY LLC vs. HARTMAN INCOME REIT MANAGEMENT
LIT COMMENTARY
A little bit of background…
Feb. 28, 2022
Key Points
On Jan. 18, 2022, the day before the following posting “Long-serving Houston REIT CEO fired for cause” was published, James Mastandrea filed for divorce from his wife, Christine.
On Feb. 9, 2022 Ms. Mastandrea was appointed COO.
On Feb 23, 2022 James Mastandrea filed a lawsuit in Harris County for wrongful termination, He is suing his wife, and the new CEO, amongst others.
Long-serving Houston REIT CEO fired for cause
Whitestone REIT has terminated, with cause, James Mastandrea from his position as Chairman and CEO of the company. David Holeman, the current CFO is appointed CEO.
In turn, Scott Hogan, currently Vice President, Controller, becomes the CFO.
Whitestone has its head office in the Westchase area and is a shopping center REIT (real estate investment trust), with properties primarily in Houston and Phoenix.
It has a market capitalization of $508 million.
The company said that an independent internal investigation found that Mr. Mastandrea’s conduct to be in violation of his employment agreement and inconsistent with Company standards and responsibilities of the CEO.
They also stated that his termination is not related to Whitestone’s operating performance, financial condition or financial reporting.
James Mastandrea, 77, has been the CEO since 2006 and has a base salary of $600,000. Because he was fired for cause, he will only receive accrued and unpaid base compensation.
Christine Mastandrea
Interestingly, the press release and SEC filing makes no mention of his wife, Christine, who is also an Executive Officer of the company. Presumably, she is still employed in her role as Executive VP of Corporate Strategy (base salary $300,000).
2016 Transaction
Back in 2016, Whitestone sold 14 non-core properties for $84 million to Pillarstone Capital REIT, which is a private company that James Mastandrea set up for the transaction. Mr. Mastandrea is still the beneficial owner of 78% of this REIT.
John Dee, the COO of Whitestone, is also a beneficial owner of Pillarstone and acts as the latter’s CFO.
The transaction was approved by a special committee of independent trustees.
Even so, in my opinion, it is not a good look for a public company.
Pillarstone has since disposed of six of the properties.
New officers
Mr. Holeman joined the company as its CFO in 2006 and was previously the CFO of Gexa Energy.
Mr. Hogan joined in 2008 having previously been the Controller at Gexa Energy.
New compensation arrangements for Mr. Holeman and Mr. Hogan have yet to be determined.
FIRED FOR CAUSE
What it means…
“Fired for cause”
Is a term used in employment situations to describe the termination of an employee’s contract or position due to their actions or behavior that violates company policies, ethical standards, or legal requirements.
When an employee is fired for cause, it typically means that the termination is a result of their own misconduct, negligence, or actions that are detrimental to the company, its employees, or its reputation.
Common reasons for being fired for cause might include:
Gross Misconduct:
Engaging in severe misconduct such as theft, fraud, harassment, violence, or any behavior that directly violates company policies.
Breach of Contract:
Violating the terms and conditions outlined in the employment contract, including non-compete clauses, confidentiality agreements, or other legally binding obligations.
Insubordination:
Refusing to follow instructions, disregarding authority, or showing a lack of respect towards superiors.
Poor Performance:
Consistently failing to meet job expectations despite having been given appropriate opportunities and support.
Safety Violations:
Engaging in actions that put oneself or others in danger, especially in industries where safety is a critical concern.
Violation of Company Policies: Ignoring or deliberately violating established company policies, such as attendance policies, code of conduct, or other rules in place.
Dishonesty: Providing false information, lying on official documents, or engaging in any form of dishonest behavior.
Conflict of Interest:
Engaging in activities that present a conflict between personal interests and the interests of the company.
Being fired for cause can have serious implications, including the loss of job, benefits, and potentially a damaged professional reputation.
🔥 T R E N D I N G
HARRIS COUNTY
Who is ‘Notorious’ Texas Administrative Judge Susan Brown and husband Judge Marc Brown? https://t.co/w3kOkkcZgh pic.twitter.com/G2R8gEZPTT— lawsinusa (@lawsinusa) August 18, 2023
SOUNDS LIKE DEJA VU
Remember Al Hartman?
Ex-Whitestone CEO files wrongful termination suit against company and executives, including his wife
MAR 1, 2022 | REPUBLISHED BY LIT: AUG 26, 2023
James Mastandrea (Whitestone REIT, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Whitestone REIT is facing a $25 million wrongful termination suit from its former CEO alleging top executives engaged in a “ruthless power grab” when ousting him in January.
In a lawsuit filed last week, James Mastandrea claims executives at the Houston-based company fabricated claims against him in order to take over the company, according to Houston Business Journal.
The complaint includes claims of breach of contract, breach of fiduciary duty, tortious interference with a contract, civil conspiracy and aiding and abetting a breach of fiduciary duty. Mastandrea is seeking payment of $25 million under his revised 2014 employment agreement, as well as additional damages, court costs and attorneys’ fees.
Whitstone, a real estate investment trust that focuses on retail shopping centers across the Sunbelt, has a market capitalization of $508 million. The firm has denied the allegations made by Mastandrea.
Mastandrea names as defendants then-CFO and Mastandrea’s successor David Holeman, general counsel Peter Tropoli, several trustees and the company itself in his complaint.
Then-executive vice president and soon-to-be ex-wife of James Mastandrea, Christine Mastandrea has also been named as a co-defendant by the complaint. Upon her husband’s departure, the company promoted Christine Mastandrea to COO.
“What may have started as a professional disagreement over the strategic goals of the business most certainly turned into a personal and vindictive campaign by the individual defendants to wrongfully oust Mastandrea from the company,”
the former executive’s complaint said. “
These individual defendants, acting in furtherance of their own personal goals and ambitions, made false misleading and disparaging statements to various committees and trustees of Whitestone, leading to Mastandrea’s termination.”
“Following the completion of a comprehensive independent internal investigation, the board voted to terminate James Mastandrea’s employment for cause,”
the company said in a statement.
“Mr. Mastandrea’s termination was consistent with the highest standards of corporate governance.”
The complaint alleges the primary reason Whitestone’s board of trustees decided to fire him was related to his alleged role in negotiations for a potential sale of the company to an unnamed third party
As CEO and chairman, Mastandrea considered selling Whitestone to establish a succession plan for when he eventually stepped down as CEO, according to Thomas Ajamie, Mastandrea’s attorney.
According to the former CEO’s complaint, Whitestone was defaulting on its credit obligations when he joined in October 2006.
Through Mastandrea’s strategy of targeting properties in high-growth markets in Arizona and Texas and going after service-oriented tenants, Whitestone’s property assets grew from $170 million to nearly $1.1 billion over 15 years.
As of September 30, Whitestone’s quarterly net income stood at $2.9 million and it owned 59 commercial properties in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio, according to U.S. Securities and Exchange Commission filings.
Mastandrea’s termination was not related to the company’s operating performance, financial condition or reporting, Whitestone said at the time.
Texas Justice System: Disqualification Quandary Exposes Declared Court Bias. Disqualified or Not?
Judges Allegiances Trump Recusal Laws, Critics Say.
A series of recent orders signed by Judge Susan Brown challenged. https://t.co/ZYRKcAuy4K#appellatetwitter @SupremeCourt_TX— lawsinusa (@lawsinusa) August 22, 2023
Who is Christine Mastandrea?
Christine Mastandrea Net Worth
The estimated Net Worth of Christine J Mastandrea is at least $3.72 Million dollars as of 30 September 2022.
Mrs. Mastandrea owns over 500 units of Whitestone REIT stock worth over $2,947,989 and over the last 9 years she sold WSR stock worth over $0.
In addition, she makes $769,692 as Executive Vice President – Corporate Strategy at Whitestone REIT.
Mrs. Mastandrea WSR stock SEC Form 4 insiders trading
Christine has made over 9 trades of the Whitestone REIT stock since 2014, according to the Form 4 filled with the SEC. Most recently she bought 500 units of WSR stock worth $4,280 on 30 September 2022.
The largest trade she’s ever made was exercising 126,431 units of Whitestone REIT stock on 2 June 2020 worth over $1,218,795. On average, Christine trades about 3,087 units every 64 days since 2014. As of 30 September 2022 she still owns at least 305,808 units of Whitestone REIT stock.
Christine Mastandrea biography
Christine J. Mastandrea serves as Executive Vice President – Corporate Strategy of the Company.
She joined Whitestone REIT (NYSE:WSR) in 2013 to lead the product strategy and marketing efforts.
Prior to joining the firm, Mrs. Mastandrea advised Whitestone in its business development and strategy.
She also worked with the executive team on high-priority projects including the firm’s IPO in 2010.
Mastandrea started her career in banking at Robert W. Baird
Later, she served as a Chief Operating Officer at MidWest Development Corporation in Chicago, Ill and founding partner of Paragon Real Estate LLP, a partnership specializing in the restructuring and recapitalization of commercial real estate companies.
Mrs. Mastandrea earned her MBA at Kellogg School of Management at Northwestern University in Evanston, Ill.
She is a former trustee of the International Women’s Air and Space Museum.
She currently serves on numerous boards including Lake Erie College, Calvin College Regional Council, and Cleveland Clinic Advisory Board for Women’s Health
Christine has a private pilot’s license and is an avid martial artist.
What is the salary of Christine Mastandrea?
As the Executive Vice President – Corporate Strategy of Whitestone REIT, the total compensation of Christine Mastandrea at Whitestone REIT is $769,692. Or $1M+ with equity award.
How old is Christine Mastandrea?
Christine Mastandrea is 54, she’s been the Executive Vice President – Corporate Strategy of Whitestone REIT since 2017.
There are 12 older and 2 younger executives at Whitestone REIT.
The oldest executive at Whitestone REIT is Jack Mahaffey, 88, who is the Independent Trustee.
THE DIVORCE PROCEEDINGS
202203088 –
MASTANDREA, JAMES C. vs. MASTANDREA, CHRISTINA J.
JAN 18, 2022 | REPUBLISHED BY LIT: AUG 26, 2023
AUG 27, OCT 13 24, NOV 1, DEC 12, 2023
MAY 18, NOV 22, 2024
Above is the date LIT Last updated this article.
Went to arbitration, failed to put GPS coordinates to return to court.
Nothin’ to report until 23rd, all the off-canvas excitement over the outside PR agency has evaporated.
We’re off to arbitration, 6 months after LIT’s last update…
Notice of Court Proceeding and Amended Notice of Court Proceeding
SCHEDULING ORDER and NOTICE OF INTENT TO DISMISS
Joint Motion for Trial Continuance (Sep. 28) granted. RSET TO OCT 23
Divorces are sealed events in Texas.
230 S Berryline Cir, Spring, TX 77381
Sudhir Reddy Address (Durable POA in Living Trust transaction)
A living trust, also known as a revocable living trust or inter vivos trust, is a legal arrangement in which an individual, known as the grantor or settlor, transfers ownership of their assets into a trust during their lifetime.
The grantor typically serves as the initial trustee, maintaining control over the trust assets.
A successor trustee is named to manage the trust in the event of the grantor’s incapacity or death.
Living trusts are “revocable,” meaning the grantor can make changes or revoke the trust during their lifetime.
Key features and benefits of a living trust include:
Probate Avoidance: One of the primary advantages of a living trust is the avoidance of probate. Probate is the legal process through which a court validates a will and oversees the distribution of assets. Assets held in a living trust generally bypass probate, allowing for a more efficient and private distribution of assets after the grantor’s death.
Privacy: Unlike probate proceedings, which are public, the administration of a living trust is typically private. This means that details about the trust’s assets, beneficiaries, and distribution are not made public.
Incapacity Planning: A living trust provides a mechanism for managing the grantor’s affairs in the event of their incapacity. If the grantor becomes unable to manage their financial affairs, the successor trustee can step in to manage the trust assets without the need for court intervention.
Flexibility and Control: The grantor retains control over the trust during their lifetime and has the flexibility to amend or revoke it. They can also change the beneficiaries or distribution terms as needed.
Smooth Succession: Upon the grantor’s death, the successor trustee can seamlessly take over the management of the trust and distribute assets according to the grantor’s wishes, without the delays associated with probate.
Asset Management: The trust allows for centralized management of assets. This can be especially beneficial if the grantor holds multiple properties or has complex financial arrangements.
Estate Tax Planning: While living trusts are not primarily designed for estate tax reduction, they can be part of a broader estate plan that includes strategies for minimizing estate taxes.
It’s important to note that the benefits of a living trust can vary depending on the individual’s circumstances, the size and nature of their estate, and the laws of the jurisdiction in which they reside. Consulting with an estate planning attorney is advisable to determine whether a living trust is a suitable option for a specific individual and to ensure that the trust is properly created and managed according to legal requirements.
PRESS RELEASE
Wednesday, October 11, 2017
For Immediate Release
U.S. Attorney’s Office, Southern District of Texas
HOUSTON – Dr. Gurunath Thota Reddy (aka Guru Reddy), Memorial Hermann Endoscopy and Surgery Center North Houston, United Surgical Partners International and Digestive & Liver Disease Consultants P.A. have entered into an agreement to pay $1,575,000 to settle allegations of Medicare fraud, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge C.J. Porter of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG).
The claims resolved by this settlement are only allegations and there has been no determination of liability.
The Medicare claims included in the settlement date from April 1, 2007, through Nov. 30, 2014.
An endoscopy nurse formerly employed by Memorial Hermann Endoscopy and Surgery Center initialed the matter.
She alleged that Reddy and other physicians who performed colonoscopies at Memorial Hermann Endoscopy and Surgery Center North Houston failed to meet established medical standards.
She claimed Reddy and other physicians performed procedures at the center so quickly that they were essentially worthless. By failing to take the necessary amount of time to closely examine the colon, precancerous lesions could be missed.
She also claimed that, in the interest of saving time, the physicians would not always examine the entire colon and would sometimes spend as little as two minutes on a colonoscopy. She also alleged the surgery center did not follow established guidelines for sanitation, claiming Reddy would not put on a clean gown prior to each procedure in order to save money.
“When Medicare pays for a patient to undergo a medical procedure, Medicare expects the health care provider to follow established medical standards of care and sanitation,” said Martinez. “There is no excuse for shortcutting quality in order to increase revenues.”
“Boosting profits with shortcuts to standard medical procedures is unacceptable and at the expense of patient safety,” said Porter. “Working with our law enforcement partners, we will continue to protect Medicare and Medicaid patients from substandard care.”
The experienced endoscopy nurse who brought the allegations further claimed she was fired the day after she complained to the Regional Vice President of United Surgical Partners about the problems she observed.
The FBI, DHHS-OIG and investigators for the U.S. Attorney’s Office conducted the investigation. Assistant U.S. Attorney Michelle Zingaro handled the litigation on this matter.
Updated October 11, 2017
WHAT’s LIT INVESTIGATING?
With the Sovereign Wealth Fund Institute @swfinstitute announcing its family office meeting of One Percenters @DallasCowboysPR – a Pandora’s box opened by Matt Chudoba of @ICRPR – we discovered the Currytown Healthcare Fraud by Dr. Guru Reddy @USAO_SDTX pic.twitter.com/K7EeENU82H— lawsinusa (@lawsinusa) October 7, 2023
The video is poor quality, so we clipped it so you could hear when Dr. Guru Reddy stood up to be appointed as Harris County Medical Society @HCMSHAM and thanked all the One Percenters in attendance [USA/India]. He’d be indicted on Medicaid Healthcare Fraud shortly. @HCAHouston pic.twitter.com/6kSGGgndEO
— lawsinusa (@lawsinusa) October 7, 2023
To put those dates in context, let’s look at Reddy’s self-disclosure about their criminal liability in India relative to personal guarantees for Continental Hospital debts of around $38M. This was signed under the penalty of perjury in Sept. 2017 – @DOJCrimDiv settled Oct. 2017. pic.twitter.com/TFXp2Aouqk
— lawsinusa (@lawsinusa) October 7, 2023
What’s @conn_nation got to do with Dr Guru Reddy’s H[W]ealthcare Fraud and Oct 2017 @USAO_SDTX press release? Well, Guru and Vasu (wife) “divorce” in (2018). Now, take a look at the $10 dollar title deed conveyance between Vasu, Sudhir Reddy, n’ Mastandrea (2021) @swfinstitute. pic.twitter.com/vQllUlWKmT
— lawsinusa (@lawsinusa) October 7, 2023
Texan World Order: The Sovereign Wealth Fund Institute Turns Dallas Cowboys Into a Family Office https://t.co/XhjvOUuNzw @BlackRock @jpmorgan @JPMorganAM @DeutscheBank @WellsFargo @BankofAmerica @MorganStanley @wef @ANTlWEF @dallascowboys @Rangers #ColonyRidge #TWO #NMA #txlege pic.twitter.com/Ydsb5GTMJ4
— lawsinusa (@lawsinusa) October 6, 2023
1600 POST OAK BLVD UNIT 1307
HOUSTON TX 77056-2912
$417k mortgage from Texas Professional Mortgage LLC (2013)
Discover the truth on LIT.
How post-2008, the US Gov. joined Wall St.’s insatiable greed leading to the pilfering of millions of homes via foreclosures, and the harsh realities faced by people as their homes were swept away.
Today, the Gov. pivots: Pandemic Murder for Profit. pic.twitter.com/IZsxBohPW1
— lawsinusa (@lawsinusa) August 26, 2023
202211380 –
MASTANDREA, JAMES C vs. TAYLOR, DAVID
FEB 23, 2022 | REPUBLISHED BY LIT: AUG 27, 2023
AUG 27, OCT 13 24, NOV 1, DEC 12, 2023
MAY 18 NOV 22, 2024
Above is the date LIT Last updated and/or visited this article.
Defendants’ Motion for Entry of Final Judgment (Nov. 6) – for Defendants.
NONSUIT/DISMISSAL, PARTIAL (RULE 162) – Defendant nonsuits counterclaims without prejudice
Notice of Removal by Plaintiff James C. Mastandrea to NDTX (Bankruptcy of Pillarstone REIT proceeding)
Oct. 31, 2023: King and Spalding enter into Rule 11 Agreement pretrial, currently set for Dec. 4, 2023.
Oct 30: ADR extended by order until Nov. 8, 2023.
| ORDER SIGNED GRNTNG PROTECTION | 10/19/2023 | |
| ORDER SIGNED QUASHING SUBPOENA | 10/19/2023 |
Baker Botts.
ORDER GRANTING APPEARANCE PRO HAC VICE SIGNED – Cockroft of King n Spalding, from Chicago…
Joint Notice of Mediation and Joint Motion To Amend Alternative Dispute Resolution Deadline
Defendants Notice Of Hearing (Oct 19, 2023)
On Defendants Motion To Quash
And
Motion For Protective Order Regarding Plaintiff’s Notice of Intention to Take Deposition by Written Questions
TEXAS SEALING COURT RECORDS
After LIT’s published articles, the law firms representing a REIT in Houston scramble to seal docket filings before District Judge Elaine Palmer in MASTANDREA, JAMES C vs. TAYLOR, DAVID https://t.co/ttuK8gVL9L @kslaw @bakerbotts @Law360 @ABAJournal pic.twitter.com/B908zJklhW— lawsinusa (@lawsinusa) September 28, 2023
Hey Judge, LIT’s Watchin’: Hurry and give us a Temporary Sealin’ Order before a Permanent Hearing on Oct 19, 2023 – Sure, no problem, signed Judge Palmer.
Defendants’ Response in Opposition to Plaintiff-Counter Defendant’s Motion for Protective Order and Motion to Quash Defendants’ Notice of Intention to take Deposition by Written Questions
A corporate dispute over termination of a management agreement led to a motion to disqualify defense counsel’s attorney.
The plaintiff, which also has a separate wrongful termination suit against the defendant, asserts the attorney has a conflict of interest.
The plaintiff had a 15-year business and personal relationship with the attorney.
Conflict of Interest? Attorney Disqualification Requested in Houston Real Estate Trust Fight
“No lawyer should be permitted to place himself or herself, in a position where, even inadvertently, they could be tempted to take advantage of confidences placed in that lawyer,”
wrote counsel for the former head of a publicly traded REIT in a disqualification motion.
Citing potential ethics violations, counsel for the former head of a publicly traded real estate investment trust is asking a Houston judge to disqualify the opposing counsel because of his past relationship with a client.
James Mastandrea asserts he grew the Whitestone REIT portfolio from $150 million when he was hired in 2006 to $1.1 billion in 2021.
When he was terminated by the board in January, Mastandrea immediately filed a wrongful termination suit.
Credit: Law.com
RIP Residential Homeownership in America https://t.co/N52UdzOWO2 pic.twitter.com/cxrfw6utqA
— lawsinusa (@lawsinusa) August 18, 2023
202328758 –
DEE, JOHN J vs. WHITESTONE REIT
MAR 3, 2023 | REPUBLISHED BY LIT: AUG 27, 2023
AUG 27, OCT 13 24, NOV 1, DEC 12, 2023
MAY 18, NOV 22, 2024
Above is the date LIT Last updated and/or visited this article.
After a failed intervention in the James Mastandrea civil proceedings, John Dee struck out with his own litigation in May, a general denial received in June and it’s all quiet since.
Oct; K&S lawyer appears, expect sealing requests to be filed expeditiously.
ORDER GRANTING APPEARANCE PRO HAC VICE SIGNED – KING & SPALDING ATTY COCKROFT FROM ILLINOIS
Predatory Lending: Experts Confirm Lender Loan Application and Mortgage Fraud Paid Millions in Fees
The Greatest Theft of Citizens Homes in American History: This case proves Lender Underwriting Fraud. Citizens Homes Are Still Being Stolen.
Texan World Order: The Sovereign Wealth Fund Institute Turns Dallas Cowboys Into a Family Office
Hosted at Dallas Cowboys, FORT NA 2023 will bring together global asset managers and Texas family offices representing $11 trillion.
Fmr Creditor Rights Attorney Now a State District Judge Allows Wall St Exec. to Seal Whitestone REIT Complaint
Bradford D. Johnson sues his former employer Whitestone REIT. The complaint is completely restricted in violation of open records laws.
