After months of legal wrangling, the dispute between DH Realty Partners and its former president John Cannon is scheduled for trial in July, with both sides claiming financial wrongdoing.
DHRP sued Cannon in March, alleging he mismanaged company funds and embezzled hundreds of thousands of dollars, the San Antonio Business Journal reported. The company, led by CEO Patricia Hoover and president Michael Hoover, allege that Cannon took unauthorized payments from the company, amounting to at least $300,000.Â
The San Antonio-based commercial real estate firm also claims to have found evidence of multiple other questionable transactions made by Cannon. The investigation into these activities is ongoing, with DHRP indicating that the total amount involved could be significant and span several years.
The company has also accused former accountant Naomi Faz of assisting Cannon in concealing the unauthorized payments.Â
Cannon has denied the accusations, and he filed a countersuit that paints the Hoovers as responsible for the company’s financial woes.
Cannon’s countersuit alleges DHRP’s management entity Sage Seis Partners is withholding more than $40,000 from his 401(k) account. DHRP’s refusal to release the funds constitutes a violation of federal law and could lead to negative tax consequences for Cannon and the company, Cannon’s legal team has argued. The firm has said it is holding the funds as a remedy for the alleged embezzlement.
DHRP, founded in 1965 and led by the husband-and-wife Hoovers, also has offices in Austin and Corpus Christi. It offers brokerage services and is also a commercial real estate investor, accountant and management company.
— Andrew Terrell
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