CRITICAL RISK Minkow 1-10 · Case Study #5

Ashcroft Capital LLC

Ashcroft Value-Add Fund I LP · Ashcroft Value-Add Fund II LP · Ashcroft Value-Add Fund III

SEC TCR #17272-599-007-317 FHFA OIG Submission — Aug 10, 2025 FIRREA Declaration — 12 U.S.C. § 1833a Reg D 506 · Instagram Mass Solicitation $365.6M Rialto Cross-Collateralized Loan Project Halston — $41.5M Sworn Value Gap

2 /10 CRITICAL

Class A — Disqualifying×2

Class B — Serious×6

Class C — Contextual×2

Minkow 1-10 Algorithm Trace

Base10 − 2(C) = 8

→

B≥4 cap→ floor 3

→

A≥1 cap→ floor 3

→

2nd A penalty− 1 = 2

→

Final Score2 / 10

2A + 6B + 2C · Score 2/10 · Do Not Invest · Refer to Counsel

§2 All 10 Fraud Flags — 2A + 6B + 2C

Class A — Disqualifying Flags (×2) — Score Floor: 3 → Penalty to 2

A Flag A-1 Irrational Ratio — 25.6% Cash-on-Cash Returns Claimed While Portfolio Is Underwater

Ashcroft Capital published a sponsored Instagram ad declaring "25.6% Annualized Cash-on-Cash Returns" while simultaneously reporting to AVAF2 investors (January 2026 Recap): "the Halston 5 portfolio…is now proceeding through a lender-led sales process. No equity recovery expected." The Project Halston portfolio (of which AVAF2 owns 33%) consists of five multifamily properties with a combined Rialto bridge loan of $365,610,184. Tax appraisal judgments for the Anthem Mesquite anchor property settled at $58M — 41.7% below the $99.5M purchase price recorded the same day as the loan. The AVAF1 Capital Call document discloses multiple properties requiring additional cash infusions for interest reserves, rate caps, and capex, including Elliot Windsprint ($300K interest reserve), Elliot Abernathy ($400K), and Elliot Roswell ($51K).

The ratio of the advertised 25.6% return to the documented capital deterioration across the portfolio constitutes an irrational ratio — a definitional Class A flag under the Minkow 1-10 system. Five future advance loan covenants, if exercised, would push average LTVs to approximately 130%+ against the promised ≤80% cap disclosed to investors.

"25.6% Annualized Cash-on-Cash Returns" — @ashcroftcapital Instagram Sponsored Ad [Exhibit A-1]

"Halston 5 portfolio…proceeding through a lender-led sales process. No equity recovery expected." — AVAF2 January 2026 Recap [Source #51]

A Flag A-2 Material Misrepresentation / FIRREA Violation — Sworn Value Contradiction & False Representations to Federally Connected Lender

On June 10, 2022, ten H5 TIC entities controlled by Ashcroft Capital recorded a deed acquiring Anthem Mesquite Apartments for $99,500,000 (Dallas Co. deed 2022-162678). The same day, FS CREIT Originator LLC (Rialto Capital) recorded the $365,610,184 cross-collateralized bridge loan — an 82.0% loan-to-purchase-price ratio. Forty-nine days later (July 29, 2022), those same 10 H5 TIC entities, through attorney Patrick Donovan / GPD, filed sworn petition DC-22-08841 in the 101st Judicial District of Dallas County claiming the same property was worth less than $62.5M. On March 28, 2023, a judge-signed Agreed Judgment settled the appraised value at $58,000,000 — a 41.7% reduction from the purchase price, final and appealable under Tex. Prop. Tax Code § 42.41.

Barry Minkow executed a signed FIRREA Declaration (12 U.S.C. § 1833a) asserting that materially false representations of purchase price and appraised value were made both to Reg D investors and to a federally connected mortgage lender (Starwood/USAA FSB) in connection with the $39,489,563 acquisition financing of 2305 Windsprint Way, Arlington, Texas (Elliot Windsprint Borrower LLC). This declaration was submitted to DOJ, FBI, HSI, and SEC.

FIRREA Declaration: "Materially False Representations of Purchase Price and Appraised Value to Regulation D Investors and to Federally Connected Mortgage Lender, in connection with $39,489,563 Acquisition Financing." — signedFIRREA_Starwood ElliotWindsprint_Declaration.pdf [Source #12]

Class B — Serious Flags (×6) — Triggers B≥4 Cap

B Flag B-1 Instagram Mass Advertising — Reg D 506(b)/(c) Accredited-Investor-Only Securities Solicited via Public Social Media

Ashcroft Capital published a sponsored Instagram/Facebook advertisement (@ashcroftcapital, "Sponsored") displaying the headline "25.6% Annualized Cash-on-Cash Returns" with the call to action "ACCREDITED INVESTORS: INVEST MULTIFAMILY / Expand Your Portfolio Beyond The Stock Market / Learn More." Securities offerings by Ashcroft entities including AVAF1, AVAF2, AVAF3, individual property LLCs (Halston Waterleigh Investors LP), and the Ashcroft Income Note were structured as Reg D private placements — securities that cannot be broadly solicited to the general public under Rule 506(b) and, under Rule 506(c), require affirmative verification of each investor's accredited status before any general solicitation. Mass social media advertising to unverified audiences using specific return figures constitutes a serious compliance flag.

"Disclaimer: Any prior investment results and returns are provided for illustrative purposes only and are not necessarily indicative of potential investment results. Past performance is no guarantee of future results." — Instagram Ad small-print [Source #1]

B Flag B-2 Rialto $365.6M Cross-Collateralized Loan Risk — Investors in Individual Properties Did Not Know Their Equity Was Cross-Pledged

On June 10, 2022, FS CREIT Originator LLC (Rialto Capital, FS Rialto 2022-FL6) recorded a single $365,610,184 bridge loan deed of trust cross-collateralizing five Ashcroft multifamily properties simultaneously: Anthem Mesquite (TX), Halston McDonough (GA), and three additional Georgia properties. The loan was rated by DBRS Morningstar (August 25, 2022 Rating Report). Cross-collateralization means that distress at any one property triggers lender remedies across all five — investors who subscribed to individual property offerings (e.g., the Halston 5 five-property 1031 exchange investor memorandum) did not receive clear disclosure that their equity was simultaneously encumbered by the performance of four other properties they did not choose. AVAF2 (33% owner of the portfolio) had no mechanism to separate its properties from lender-led disposition once the portfolio entered distress.

"FS Rialto 2022-FL6 · $365,610,184 Cross-Collateralized Loan · 5 Ashcroft Properties · DBRS Morningstar Rated" — Correct Rialto.pdf [Source #43]

B Flag B-3 Tax Appraisal Manipulation — Systematic Sworn Contradictions Between Purchase Prices and Tax Court Agreed Judgments

Across multiple Texas and Georgia properties, Ashcroft-controlled borrower entities filed sworn tax appraisal petitions claiming values materially below recorded deed purchase prices. The same legal counsel (Patrick Donovan / GPD) represented Ashcroft entities in multiple proceedings. Key documented contradictions include: Anthem Mesquite purchased $99.5M → agreed judgment $58M (41.7% below, 49 days); MacArthur Place Borrower LLC vs. Dallas Central Appraisal District (DC-21-13340, filed Sept. 13, 2021); Marabella Apartments LP vs. Dallas Central Appraisal District (DC-21-13334); Vista Pointe Borrower vs. DCAD (DC-20-12179, DC-21-12347, DC-24-13390); Anthem Town East (DC-22-09092, DC-23-13158); Brighton Borrower (DC-22-09095, DC-23-13108); Oaks of Valley Ranch Borrower II (DC-24-13397); Elliot Windsprint Borrower (Tarrant Co. 067-327426-21, 352-337697-22, 348-344971-23, 017-367774-25). The same Ashcroft entities that produced investor presentations showing acquisition prices as proof of value simultaneously filed sworn court documents claiming those same properties were worth 20–41.7% less.

B Flag B-4 AVAF1 Capital Call + AVAF2 Lender-Led Sale — Active Capital Loss in Progress

The AVAF1 Capital Call Uses & Projections document discloses multiple properties requiring additional cash infusions: Elliot Baymeadows ($1,604,533 remaining from sale), Elliot Abernathy ($400K capex + rate cap + dispo paydown), Elliot Roswell ($51.9K), Elliot Windsprint ($300K interest reserve + $250K capex), and a "Refinanced 3-pack" requiring $1M capital improvement reserve by July 2026 and another $1M by July 2027. Simultaneously, the AVAF2 January 2026 Recap disclosed that the Halston 5 portfolio (AVAF2 owns 33%) is "proceeding through a lender-led sales process" with "no equity recovery expected." Amendment No. 1 to the AVAF1 LPA (dated February 2026) waives accrued and unpaid Asset Management Fees — a structural change in response to fund distress. These conditions contradict any representation of above-market returns being generated for investors.

"No equity recovery expected." — AVAF2 January 2026 Recap (investorrelations@ashcroftcapital.com to rosemorgan19@gmail.com, Mar 10, 2026) [Source #51]

B Flag B-5 Future Advance Loan Covenants — 5 Properties with "Doubled" Debt Capacity; LTV ~130%+ vs. ≤80% Promised

The FHFA OIG submission (August 10, 2025) and the SEC Whistleblower update (same date) detail that five Ashcroft-owned properties contain "doubled" future advance covenants in notarized mortgage loan documents. These covenants, if exercised, would result in loan-to-value ratios averaging approximately 130% or higher at current appraised values — against the representation in fund materials that LTVs would not exceed 80%. As stated in the SEC update: "The very insertion of the potential of debt violates [the representation] whether the company exercised the debt extensions or not. Their very presence further endangers investors who have no idea these debt time bombs exist in notarized mortgage loan documents for fully functioning assets." Three of the five properties involve one lender (PGIM and Rialto combined totaling approximately $800M across the portfolio).

"…the very insertion of the potential of debt violates this representation whether the company exercised the debt extensions or not." — AshcroftCapital SEC update futureadvances.docx, Aug 10, 2025 [Source #13]

B Flag B-6 Open Liens on Georgia Properties + Apparent Undisclosed $15.6M CBRE Debt (Halston McDonough)

Title search reports on Georgia properties reveal active encumbrances: at 1355 Graves Rd, Norcross, GA (Vida Borrower LLC), a Materialmans & Mechanics Claim of Lien dated 10/12/2022 (Doc ID 60955-79) in the amount of $56,379.40 (Elite Construction & Management Inc.) and a county lien dated 02/07/2022 (5911-296) of $2,195.39 (Gwinnett County / Sienna Heights MF Ventures LLC) remain open — title report notes "THIS PROPERTY STILL NOT RELEASE." Additionally, the Halston McDonough property at 745 Hwy 42 S, McDonough, GA (purchased for $72M in June 2022; Rialto allocated $59,485,069) has an apparent unreleased 2014 CBRE mortgage (book-page 13845-132) for $15,600,000. Henry County Assessor (Cathy Walden, phone July 2, 2026) confirmed: appraised value $50,270,800; Hearing Officer agreed with county; agent filed to Superior Court; settled at $49,271,000 with 3-year freeze. No release of the 2014 CBRE loan was found on title reports.

"OPEN MORTGAGE & LIENS FOUND AGAINST THE PROPERTY. THIS PROPERTY STILL NOT RELEASE." — 1355 Graves Rd title report [Source #2]

Class C — Contextual Flags (×2)

C Flag C-1 Cherry-Picked Metric — 25.6% CoCR Headline Without Negative Equity Disclosure

The Instagram advertisement selects the single most favorable return metric available — 25.6% annualized cash-on-cash return — without simultaneous disclosure of properties in lender-led sale, active capital calls, or fund amendments waiving management fees. Investor-facing materials (AVAF1, AVAF2, AVAF3 fund presentations) use projected IRR figures based on pro forma assumptions that did not account for rate environment deterioration, cross-collateralization risk, or the future advance covenant exposure. The disclaimer on the ad ("Past performance is no guarantee of future results") is rendered in type approximately 1/20th the size of the "25.6%" headline.

C Flag C-2 FOMO Pressure Tactics — "Expand Your Portfolio Beyond The Stock Market" / Limited Availability Solicitation

The Instagram ad's lower panel reads: "ACCREDITED INVESTORS: INVEST MULTIFAMILY / Expand Your Portfolio Beyond The Stock Market" — a classic appeal to fear-of-missing-out by positioning equities as inferior. The Ashcroft Income Note Presentation discloses "99 Spots Available" and "Early Bird Incentive" for first $5M — artificial scarcity and urgency tactics. Multiple fund presentations describe investment opportunities as "limited time" and emphasize minimum investments ($100K for Income Note) suggesting exclusive access. These presentation techniques, while common, satisfy the Class C contextual flag in combination with the documented Class A and B indicators above.

"99 Spots Available · INVEST NOW · Early Bird Incentive of 2% annual accrued return payable at maturity to investors who fund the first $5M." — Ashcroft Income Note Presentation [Source #57]

§3 The Smoking Gun — Project Halston: Two Irreconcilable Sworn Values

The Core Contradiction

Same entities · Same property · Same counsel · 49 days apart — Two sworn values $41.5M apart

June 10, 2022

$99,500,000

PAID for Anthem Mesquite
Dallas Co. deed 2022-162678
Same day as $365.6M Rialto loan
H5 TIC 1–10 as grantees
Roessler + Fairless guarantors

July 29, 2022 · 49 DAYS LATER

< $62,500,000

SWORN PETITION FILED
Dallas Co. DC-22-08841
101st Judicial District
SAME 10 H5 TIC entities
SAME counsel: Donovan / GPD

March 28, 2023

$58,000,000

JUDGE-SIGNED AGREED JUDGMENT
2022 appraised value settled
Final & appealable
Tex. Prop. Tax Code § 42.41
−41.7% below purchase price

$41,500,000

The Gap — same property, same entities, sworn values 41.7% apart within 49 days

Expert Analysis (expertsfinalProject Halston Full Report.docx): "On June 10, 2022, ten tenant-in-common entities (H5 TIC 1 through H5 TIC 10) — all controlled by Ashcroft Capital, with Frank Roessler, Joseph Fairless, and Ashcroft Value-Add Fund II, LP (AVAF2) as guarantors — recorded a deed acquiring the Anthem Mesquite Apartments for $99,500,000. The same day, FS CREIT Originator LLC (Rialto Capital) recorded a $365,610,184 cross-collateralized deed of trust against this property and four Georgia multifamily properties. The transaction represented a loan-to-purchase-price ratio of 82.0%. Forty-nine days later, on July 29, 2022, those same ten H5 TIC entities — through attorney Patrick Donovan/GPD — filed sworn petition DC-22-08841 claiming the property was worth less than $62.5M."

Critical Legal Question: Under what principle of real estate valuation can the same property acquired for $99.5M on a given date be worth $41.5M less — as sworn under penalty of perjury — 49 days later, while also serving as collateral for $365.6M in bridge financing on the same day as the $99.5M purchase?

§4 Sworn Value Contradiction Table — TX & GA Agreed Judgments vs. Purchase Prices

All values derived from judge-signed agreed judgments, recorded deeds, and appraisal district case records. All Ashcroft borrower entities represented by Patrick Donovan / GPD Law unless otherwise noted.

Property	Borrower Entity	Purchase Price	Tax Court Value (Agreed Judgment)	Gap / % Below	Case No.	Source
Anthem Mesquite Mesquite, TX (Dallas Co.)	H5 TIC 1–10 (10 entities)	$99,500,000	$58,000,000 (Mar 28, 2023)	−$41.5M · −41.7%	DC-22-08841	Sources #25, #26
Elliot Windsprint Arlington, TX (Tarrant Co.)	Elliot Windsprint Borrower LLC / Bridge III TX Windsprint LLC	$39,489,563 (FIRREA acq. financing)	$25,000,000 (Mar 2022 AJ); $30M (2022); $~34M (Dec 2025)	−$5–14M range	067-327426-21; 352-337697-22; 348-344971-23; 017-367774-25	Sources #36–#39
Lexington Apts (Brighton Borrower) 5426 & 6800 Meadowcreek, Dallas, TX	Brighton Borrower LLC / Brighton Borrower II LLC	[Pre-loan value: Feb 2022 AJ confirmed]	Agreed Judgment DC-21-10340; DC-22-09095; DC-23-13108 (Mar 2024)	Multiple years documented	DC-21-10340; DC-22-09095; DC-23-13108	Sources #30, #31, #40
Anthem Valley Ranch (Vista Pointe) Irving, TX (Dallas Co.)	Vista Pointe Borrower LLC / Vista Pointe Borrower II LLC	[see fund materials]	Feb 2021 AJ; Feb 2021 judge-signed; 2024/2025 AJ filed	Documented	DC-20-12179; DC-21-12347; DC-24-13390	Sources #32, #33, #34
MacArthur Place / Estates at Las Colinas 2346 & 2414 N MacArthur, Irving, TX	MacArthur Place Borrower LLC / MacArthur Place Borrower II LLC	[see assessor records]	Jan 2022 AJ (DC-21-13340, Judge Tillery)	Documented	DC-21-13340	Sources #28, #29
Marabella at Las Colinas / Halston 5 4805 & 4701, Dallas, TX	Marabella Apartments LP / Marbella Apartments II LLC	[see PPM; original purchase]	2021 AJ (DC-21-13334); 2022 filing DC-22-08642	Multiple years documented	DC-21-13334; DC-22-08642	Sources #6, #27
Anthem Town East Mesquite, TX (Dallas Co.)	Anthem Town East VF Borrower LLC / Anthem Town East MB Borrower LLC	[deed records]	2022 AJ DC-22-09092; 2023 AJ DC-23-13158	Multiple years documented	DC-22-09092; DC-23-13158	Sources #52, #53
Oaks of Valley Ranch 9519 Valley Ranch Pkwy, Irving, TX	Oaks of Valley Ranch Borrower II LLC	[deed records]	DC-24-13397 filed Aug 2024 (Judge Redmond)	Pending / documented	DC-24-13397	Source #11
Halston McDonough 745 Hwy 42 S, McDonough, GA	[Halston McDonough entity]	$72,000,000 (Jun 2022)	$49,271,000 (2025 Superior Court settlement, 3-yr freeze)	−$22.7M · −31.5%	Henry Co. Assessor 108-01026008 / WinGap system	Source #14

§5 Principal Backgrounds

Frank Roessler

CEO & Co-Founder — Ashcroft Capital LLC

Co-founder and chief executive of Ashcroft Capital LLC (461 5th Ave #16, New York, NY 10017-7718). Named guarantor on Ashcroft Value-Add Fund II, LP (AVAF2) documentation in connection with the FS Rialto 2022-FL6 $365,610,184 cross-collateralized bridge loan. Signatory authority for fund documents, PPMs, and subscription agreements across AVAF1, AVAF2, and AVAF3. Responsible for representations made to Reg D investors in fund materials. Named in SEC TCR #17272-599-007-317 and FIRREA Declaration filed Aug 10, 2025.

SEC TCR — Guarantor — FIRREA

Joe Fairless

Co-Founder & Host — "Best Real Estate Investing Advice Ever" Podcast

Co-founder of Ashcroft Capital LLC. Named guarantor on AVAF2 documents in connection with the Rialto cross-collateralized loan. Operates the "Best Real Estate Investing Advice Ever" podcast and social media presence promoting multifamily investment — channels through which the 25.6% CoCR claims were amplified. Named in SEC TCR #17272-599-007-317 (filed September 24, 2024). His public profile and investor education content creates heightened duty of care toward retail accredited investors.

SEC TCR — Guarantor — Public Solicitation

Spencer T. Hilligoss

Head of Investor Education — Ashcroft Capital

DOB: June ##, 1983 (Age 42). SSN: 612-38-####. Comprehensive background report generated March 5, 2026 (Person ID: 031627854217). Associated addresses include: 1333 Bay St, Alameda CA 94501; 3260 Madison St, Alameda CA 94501; 115 Westwood St, Vallejo CA 94591; 628 Broderick St Apt A, San Francisco CA 94117. Indicators: Property: Yes; Corporate Affiliation: Yes; Deceased: No. High Risk Indicator present. Responsible for investor education and communications.

Background Report — High Risk Indicator

§6 Corporate Structure — Fund Entities & H5 TIC Borrower LLCs

All entities share the registered address 461 5th Ave #16, New York, NY 10017-7718 unless otherwise noted. All TIC entities in DC-22-08841 represented by same counsel (Donovan/GPD).

Fund Entities

Ashcroft Capital LLC

Vertically integrated multifamily investment firm. Sponsors all funds. 461 5th Ave #16, New York, NY 10017-7718.

PRINCIPALS: Roessler (CEO) · Fairless (Co-Founder)

Ashcroft Value-Add Fund, LP (AVAF1)

Delaware LP. GP: Ashcroft Value-Add Fund GP, LLC. Active capital call Feb 2026. Amendment No. 1 to LPA waives accrued Asset Management Fees. Multiple properties in distress.

SEC TCR #17272-599-007-317 · LPA Amendment No. 1 (Feb 2026)

Ashcroft Value-Add Fund II, LP (AVAF2)

Delaware LP. 33% owner of Project Halston (5-property portfolio). Lender-led sale in progress Jan 2026. No equity recovery expected. GP: Ashcroft Value-Add Fund II GP, LLC.

AVAF2 Subscription Agreement · Roessler & Fairless as guarantors

Ashcroft Value-Add Fund III (AVAF3)

Delaware LP. Investor Overview Deck Nov 22, 2022. GP: Ashcroft Value-Add Fund III GP, LLC. Continuing capital raise activity.

AVAF3 Presentation (Nov 2022)

Halston Waterleigh Investors, LP

Individual property LP. Subscription Agreement June 12, 2024. GP: Halston Waterleigh GP, LLC. 9405 Ascend Falls Dr, Winter Garden, FL 34787 (Orange Co. — 9405 Ascend Falls Owner LLC).

Sub Agreement 061224 · Braxton Waterleigh / Halston Waterleigh

Ashcroft Income Note (AIN)

Structured note offering. Accredited investors. 10% annualized + 2% accrued at maturity. $100K minimum. 99 spots available. "Early Bird Incentive" for first $5M. 1st Loss Position. No fees.

Ashcroft Income Note Presentation — Retail

H5 TIC Borrower LLCs — Anthem Mesquite (DC-22-08841 Plaintiffs)

H5 TIC 1

MVR Borrower, LLC

Anthem Mesquite portfolio

H5 TIC 2

Brighton Borrower, LLC

Lexington Apartments

H5 TIC 3

Eastmont Borrower, LLC

811 NE Green Oaks, Arlington TX

H5 TIC 4

MacArthur Borrower, LLC

MacArthur Place

H5 TIC 5

Northern Cross Borrower, LLC

4200 Wisdom Way, Haltom City TX

H5 TIC 6

OVR Borrower, LLC

Oaks Valley Ranch

H5 TIC 7

Southside Borrower, LLC

8745 Palm Breeze Rd, Jacksonville FL

H5 TIC 8

Vista Pointe Borrower, LLC

Anthem Valley Ranch, Irving TX

H5 TIC 9

Marabella Borrower, LLC

Estates at Las Colinas

H5 TIC 10

Halston Borrower, LLC

Anthem Mesquite Apartments

§7 FIRREA Analysis — Elliot Windsprint / Starwood / $39.5M Acquisition Financing

Statute

12 U.S.C. § 1833a — FIRREA

Financial Institutions Reform, Recovery, and Enforcement Act. Imposes civil penalties of up to $1.1M per violation (or up to $5.5M for continuing violations) for any person who makes a false statement or misrepresentation in connection with a loan from a federally insured financial institution. The United States may bring a civil action in district court. No criminal intent required — civil standard of preponderance of the evidence.

Declaration

Barry Minkow FIRREA Declaration — Signed

Re: Ashcroft Capital LLC, AVAF1 LP, Elliot Windsprint Borrower LLC, and affiliated entities. Materially false representations of purchase price and appraised value made to Reg D investors AND to federally connected mortgage lender (Starwood / USAA FSB) in connection with $39,489,563 acquisition financing of 2305 Windsprint Way, Arlington, TX 76014. Submitted to: DOJ, FBI, HSI, SEC.

Property

2305 Windsprint Way — Elliot Windsprint Apartments

Arlington, TX 76014-1859. APN: 05640954 (Tarrant Co.). Title search confirms Elliot Windsprint Borrower LLC. Multiple tax appraisal challenge proceedings filed against Tarrant Appraisal District (2021–2025). Agreed Judgments settling property value below purchase price documented in Tarrant County District Court records 067-327426-21, 352-337697-22, 348-344971-23, 017-367774-25.

Timeline

AVAF1 Capital Call — Windsprint Still in Distress

AVAF1 Capital Call Uses & Projections (2026) discloses Elliot Windsprint requiring: $300,000 interest reserve (Feb 2026) + $250,000 capex (Feb 2026). This confirms the property continues to require investor capital infusions as of early 2026, years after the alleged false representations were made at acquisition.

FIRREA Declaration Core Allegation: "Re: Ashcroft Capital LLC, Ashcroft Value-Add Fund I LP ('AVAF1'), Elliot Windsprint Borrower LLC, and Affiliated Entities — Materially False Representations of Purchase Price and Appraised Value to Regulation D Investors and to Federally Connected Mortgage Lender, in Connection with $39,489,563 Acquisition Financing of 2305 Windsprint Way, Arlington, Texas." — signedFIRREA_Starwood ElliotWindsprint_Declaration.pdf

FHFA OIG Submission Context

On August 10, 2025, a separate FHFA OIG submission was filed detailing five Ashcroft properties containing "doubled" future advance loan covenants. The submission notes that an initial report was filed February 28, 2025, titled "Pre-2008 Financial Crisis Multifamily Apparent Mortgage Fraud: Ashcroft Capital" covering cross-collateralized loans with PGIM and Rialto totaling approximately $800M combined. Three of the five future advance covenant properties involve one of these two lenders.

§8 Future Advance Loan Covenants — 5 Properties, ~130%+ LTV vs. ≤80% Promised

SEC Whistleblower Update (Aug 10, 2025): "The below are two issues. The first is five future advance loans obtained by Ashcroft Capital that, if exercised would equate to LTVs that average around 130% or higher in some instances. The company has stated to investors LTVs will not exceed 80% so the very insertion of the potential of debt violates this representation whether the company exercised the debt extensions or not. Their very presence further endangers investors who have no idea these debt time bombs exist in notarized mortgage loan documents for fully functioning assets."

The Mechanism

"Doubled" Future Advance Covenants

Future advance covenants in notarized mortgage documents allow a lender to make additional advances against the same collateral. When the covenant effectively doubles the potential loan amount, the combined original loan plus maximum future advance can push the LTV far above the property's current market value — particularly problematic when appraisal evidence suggests current market values are materially below purchase prices.

The LTV Contradiction

≤80% Promised · ~130%+ Reality (If Exercised)

Fund materials and investor presentations across AVAF1, AVAF2, AVAF3, and individual property offerings consistently represent LTVs at or below 80%. The AVAF2 LTV sheet (ashcroftltv'ssaraandftlaud.pdf) lists: Midtown 501 (66%), Halston Lakeside (69%), Elliot Cocoplum (listed). If future advance covenants on 5 properties were exercised, the average LTV would reach approximately 130%+ based on current tax appraisal judgment values.

FHFA OIG Referral

Filed Feb 28 + Aug 10, 2025

Initial FHFA OIG report: Feb 28, 2025 ("Pre-2008 Financial Crisis Multifamily Apparent Mortgage Fraud: Ashcroft Capital"). Supplemental new evidence report: Aug 10, 2025 (OIGAshcroftCapitalBanksubmission.docx). Three of five future advance covenant properties involve PGIM and/or Rialto — both are entities connected to federally regulated financial systems.

Investor Impact

Undisclosed Debt Time Bombs in Notarized Documents

Investors in individual property LPs (Halston Waterleigh, Aspect, Braxton Waterleigh, etc.) have no visibility into the future advance covenants buried in the underlying mortgage documents. The commitments were made at the entity/borrower LLC level, not disclosed in PPMs or subscription agreements. If exercised, investor equity would be subordinated to dramatically expanded debt obligations.

§9 FS Rialto 2022-FL6 — $365,610,184 Cross-Collateralized Loan Analysis

DBRS Morningstar Rating

FS Rialto 2022-FL6 Bridge Loan

Total Loan Amount$365,610,184

Rating AgencyDBRS Morningstar

Rating Report DateAugust 25, 2022

StructureCross-Collateralized

Properties5 Simultaneously

Recording DateJune 10, 2022

Cross-Collateral Composition

5 Ashcroft Properties — All Linked

Anthem Mesquite (TX)~$99.5M purchase

Halston McDonough (GA)$72M purchase

Rialto Allocated (McDonough)$59,485,069

GA CBRE debt (apparent)$15,600,000

AVAF2 Ownership33% of portfolio

Status (Jan 2026)Lender-Led Sale

Rialto DBRS Ratings Tranches

Capital Structure (Aug 2022)

AAA (sf)Provisional → Finalized

AA (low) (sf)Provisional → Finalized

A (low) (sf)Provisional → Finalized

BBB+ to BBB- (sf)Provisional → Finalized

BB (low) (sf)NR

ContactsDonovan · Applegate · Stafford

The cross-collateralized structure means all five properties serve as mutual collateral for the entire $365.6M loan. If one property defaults or is sold at a loss (as is currently occurring with the Halston 5 portfolio in the lender-led sale process), the lender's recovery rights extend to all five properties simultaneously. Investors who purchased interests in individual property LPs within the AVAF2 portfolio — believing they were exposed only to a single asset — are in fact exposed to the performance of all five cross-pledged assets. This structural risk was not prominently disclosed in investor-facing materials reviewed.

Rialto Rating Report (Correct Rialto.pdf): "FS Rialto 2022-FL6 Issuer, LLC — DBRS Morningstar — August 25, 2022." The rating report evaluated the loan at origination; subsequent tax appraisal agreed judgments establishing values 20–41.7% below purchase prices were not yet available at the time of rating. Current LTV implied by agreed judgment values materially exceeds original underwriting assumptions.

§10 Capital Call & Investor Loss Analysis — AVAF1 Call + Halston 5 Lender-Led Sale

AVAF1 Capital Call Uses & Projections (2026)

Property	Description	Date	Amount
Elliot Baymeadows	Remaining Funds from Sale	1/1/2026	($1,604,533.11)
Elliot Abernathy	Outside Dispo Date Paydown	4/9/2026	$250,000.00
Elliot Abernathy	Capex	1/1/2026	$150,000.00
Elliot Abernathy	Rate Cap	2/1/2026	$250,000.00
Elliot Roswell	Outside Dispo Date Paydown	2/9/2026	$19,250.00
Elliot Roswell	Capex	2/1/2026	$11,550.00
Elliot Roswell	Rate Cap	2/1/2026	$21,175.00
Elliot Windsprint	Interest Reserve	2/1/2026	$300,000.00
Elliot Windsprint	Capex	2/1/2026	$250,000.00
Refinanced 3-pack	Capital Improvement Reserve Fund	7/30/2026	$1,000,000.00
Refinanced 3-pack	Capital Improvement Reserve Fund	7/30/2027	$1,000,000.00

AVAF2 January 2026 Recap — Lender-Led Sale Disclosure

From: investorrelations@ashcroftcapital.com → To: rosemorgan19@gmail.com (Tue, Mar 10, 2026): "Business Plan Update: Halston Citrus Ridge continues to perform steadily, with occupancy improving to approximately 93% and a strong pipeline of applications. Leasing remains supported by targeted concessions, up to eight-week incentives, and gift cards. Meanwhile, the Halston 5 portfolio, of which AVAF2 owns 33%, is now proceeding through a lender-led sales process. No equity recovery expected."

Lender-Led Sale

"No Equity Recovery Expected"

A lender-led (or forced) sale means the lender has taken control of the disposition process, typically following default or imminent default. "No equity recovery expected" is a confirmation from management that investors in the Halston 5 portfolio (AVAF2, 33% stake) will receive no return of their invested capital. This represents total loss of equity for AVAF2 investors in the Halston 5 portion of the fund.

AVAF1 Amendment

LPA Amendment No. 1 — Asset Management Fee Waiver

Amendment No. 1 to the AVAF1 LPA (effective February 2026) was executed by the General Partner (Ashcroft Value-Add Fund GP, LLC) with consent of a Majority in Interest of Partners under Section 5.4(b)(vi). The amendment waives accrued and unpaid Asset Management Fees under Section 5.5(d). Fee waivers in fund LPAs are a classic signal of fund distress — the GP cannot justify charging management fees when fund performance has deteriorated to the point of capital calls and lender-led sales.

§11 Investor Due Diligence Checklist

Cross-Collateralization Disclosure: Demand written disclosure of whether your target property is cross-collateralized with any other Ashcroft property or any Rialto/PGIM bridge loan. Verify against the FS Rialto 2022-FL6 deed of trust (Dallas Co.) and any PGIM equivalents.

Future Advance Covenants: Demand production of the complete notarized mortgage documents for your target property. Search for any "future advance," "dragnet," or "all obligations" clause. Calculate maximum LTV if the future advance covenant is exercised at current appraised (not purchase) value.

Tax Appraisal Contradiction: Request all tax appraisal challenge filings and agreed judgments for your target property. Compare the tax court settled value to the purchase price used in the PPM. Any agreed judgment below purchase price within 3 years raises a sworn value contradiction.

Lien Status: Order an independent title search (not Ashcroft-provided) on your target property. Confirm all materialmans liens, mechanics liens, county liens, and prior mortgage assignments have been released. Specifically verify the 1355 Graves Rd (GA) open liens and the Halston McDonough 2014 CBRE mortgage (book-page 13845-132).

Capital Call History: Request full accounting of all capital calls made across AVAF1, AVAF2, and any property-level fund in which you are considering investing. AVAF1 Capital Call Uses & Projections (2026) discloses at minimum $3.8M+ in required cash infusions from investors for ongoing operating needs.

FIRREA Disclosure: Ask directly: "Has any FIRREA referral, declaration, or related submission been made to any federal law enforcement or regulatory agency concerning Ashcroft Capital or any Ashcroft-affiliated entity?" Review signedFIRREA_Starwood ElliotWindsprint_Declaration.pdf submitted to DOJ/FBI/HSI/SEC.

SEC TCR Status: SEC TCR #17272-599-007-317 was submitted September 24, 2024. FHFA OIG submissions were made February 28 and August 10, 2025. Ask Ashcroft Capital directly for any SEC, FHFA, DOJ, or FBI correspondence received in connection with these submissions.

Reg D Advertising Compliance: Evaluate whether the Instagram/Facebook "25.6% CoCR" sponsored advertisement constitutes a general solicitation for securities under Rule 506(b) or a general solicitation requiring 506(c) verification. Confirm whether accredited investor verification was affirmatively conducted for all investors exposed to this advertising.

Current Fund Status: Request the most recent quarterly investor update for any fund you are evaluating. The AVAF2 January 2026 Recap confirmed lender-led sale in the Halston 5 portfolio. Verify whether the fund you are considering holds any Halston 5 portfolio assets or cross-collateralized properties.

Standalone Property Structures: Some Ashcroft individual property LP structures (e.g., Halston Lakeside, Midtown 501) appear to use separate fixed-rate debt and may not be part of the Rialto cross-collateral. Verify independently before investing.

§12 Source Document Index — 85 Sources

1GOV/SOCIALInstagram/Facebook Sponsored Ad — @ashcroftcapital: "25.6% Annualized Cash-on-Cash Returns / Accredited Investors: Invest Multifamily / Expand Your Portfolio Beyond The Stock Market" — images/ashcroft-instagram-ad.jpg

2TITLE1355 Graves Rd, Norcross, GA 30093-1373.pdf — Title Search Report (Gwinnett Co.) — Open Lien: $56,379.40 materialmans + $2,195.39 county lien — "This Property Still Not Release"

3TITLE1450 Raintree Dr, Roswell, GA 30076-2757.pdf — Title Search Report (Fulton Co.) — Elliot Roswell borrower entity

4TITLE1000 KETNER ST, DAVENPORT, FL 33897-9605.pdf — Title Search Report (Polk Co., FL) — Halston Four Corners Borrower LLC

5TITLEupdated1000 MARLIN LAKES CIR, SARASOTA, FL 34232-5959.pdf — Title Search Report (Sarasota Co.) — Halston Lakeside Borrower LLC

6LEGAL2021 Marabella at Las 4805 and 4701 Assessor value.pdf — Dallas Co. DC-21-13334 — Agreed Judgment — Marabella Apartments LP (Estates at Las Colinas) vs. DCAD

7LEGAL2021 value. MacArthur Place Borrower II, LLC is 2346 N MacArthur Blvd assessor.pdf — DC-21-13340 Proposed AJ — Judge Dale B. Tillery — Dallas Co.

8LEGAL2021 values Macarthur Place Borrrower 2346 N.pdf — DC-21-13340 Original Petition — Sept 13, 2021 — MacArthur Place Borrower LLC vs. DCAD

9PPM2019 PPM - Marabella - then Halston 5.pdf — Investment Instructions + PPM — Marabella at Las Colinas (later renamed Halston 5)

10PPM2019 Amber Lakes PPM.pdf — Investment Instructions + Confidential PPM — Amber Lakes Apartments

11LEGALtrellis_docket_dc-24-13397-2.pdf — Oaks of Valley Ranch Borrower II LLC vs. DCAD — DC-24-13397 — Filed Aug 22, 2024 — Judge Aiesha Redmond — 160th District Court

12GOV/FIRREAsignedFIRREA_Starwood ElliotWindsprint_Declaration.pdf — Barry Minkow Declaration under 12 U.S.C. § 1833a — Elliot Windsprint/$39.5M — Submitted to DOJ/FBI/HSI/SEC

13GOV/SECAshcroftCapital SEC update futureadvances.docx — Aug 10, 2025 — SEC Whistleblower Office — Future Advance Covenants — 5 Properties — LTV ~130%+ vs. ≤80% promised

14GOV/MEMOMemo to the File Halston McDonough.docx — Jul 2, 2026 — Cathy Walden (Henry Co. Assessor) phone confirmation — $49,271,000 settled value · $15.6M CBRE 2014 unreleased debt (book-page 13845-132)

15GOV/OIGOIGAshcroftCapitalBanksubmission.docx — Aug 10, 2025 — FHFA Office of Inspector General — New Evidence re future advance covenants · Combined PGIM+Rialto ~$800M · 5 properties

16TITLE2305 Windsprint Way, Arlington, TX 76014-1859.pdf — Title Search Report (Tarrant Co.) — Elliot Windsprint Borrower LLC

17TITLE811 NE GREEN OAKS BLVD, ARLINGTON, TX 76006-2200.pdf — Title Search Report (Tarrant Co.) — Eastmont Apartments Borrower II LLC — 461 5th Ave #16

18TITLE4200 WISDOM WAY, HALTOM CITY, TX 76117.pdf — Title Search Report (Tarrant Co.) — Northern Cross TIC LLC — 461 5th Ave #16

19TITLE9519 VALLEY RANCH PKWY E, IRVING, TX 75063-4904.pdf — Title Search Report (Dallas Co.) — Oaks of Valley Ranch Borrower II LLC — 461 5th Ave #16

20TITLE6800 ARAPAHO RD, DALLAS, TX 75248-4023.pdf — Title Search Report (Dallas Co.) — Brighton Borrower II LLC — 461 5th Ave #16

21TITLE5426 MEADOWCREEK DR, DALLAS, TX 75248-5000.pdf — Title Search Report (Dallas Co.) — Brighton Borrower II LLC — 461 5th Ave, NY 10017

22TITLE2414 N MACARTHUR BLVD, IRVING, TX 75062-5405.pdf — Title Search Report (Dallas Co.) — MacArthur Place Borrower II LLC — 461 5th Ave #16

23TITLE4013 W NORTHGATE DR, IRVING, TX 75062-1932.pdf — Title Search Report (Dallas Co.) — Eagle Crest Borrower LLC — 461 5th Ave, NY 10017

24TITLE2241 S SH 121 BUS, LEWISVILLE, TX 75067.pdf — Title Search Report (Denton Co.) — Vista 121 Borrower LLC — 461 5th Ave #16

25LEGALTIC 2022 Assessor.pdf — DC-22-08841 — AGREED JUDGMENT — H5 TIC 1–10 vs. Dallas Central Appraisal District — 101st Judicial District — Anthem Mesquite — $58,000,000 (Mar 2023)

26LEGAL2100 and 2145 Anthem Mesq TIC Assessor value.pdf — DC-22-08841 — H5 TIC 1–10 Agreed Judgment — Anthem Mesquite — confirms all 10 TIC entities + DCAD

27LEGAL2022 Marabella at Las Apartments II LLC 4805 4701 Assessor.pdf — DC-22-08642 — Marbella Apartments II LLC / Ashcroft Howard LLC (Estates at Las Colinas) vs. DCAD

28LEGALJan 2022 MacArthur Place Borrower LLC County Assessor Total Value 2022.pdf — DC-21-13340 Proposed AJ filed Jan 6, 2022 — MacArthur Place Borrower LLC vs. DCAD

29LEGAL2346 'MacArthur Place Borrower, LLC 2022 County Assessor Total Value 2022.pdf — DC-21-13340 — same case as above — confirmed closed

30LEGALMost important document Feb 2022 CONFIRMED Value preloan.pdf — DC-21-10340 — Brighton Borrower LLC (Lexington Apartments) vs. DCAD — Agreed Judgment — 191st Judicial District — pre-Rialto loan confirmed value

31LEGALJudge signed 5426 6800 2022.docx — DC-22-09095 — Borrower Brighton II LLC and Brighton Borrower LLC (Lexington Apartments) — 68th Judicial District — 2022 AJ

32LEGALFeb 2021 Vista Pointe Borrower 701 Cowboys Valuation Assessor.pdf — DC-20-12179 — Vista Pointe Borrower LLC vs. DCAD — Judge Aiesha Redmond — Agreed Judgment Feb 10, 2021

33LEGAL2021Final Judge signed 701 Cowboys.docx — DC-21-12347 — Vista Pointe Borrower LLC (Anthem) vs. DCAD — 298th Judicial District — 2021 Agreed Judgment

34LEGALJudge signed vistapointeborrower 2024 2025.docx — DC-24-13390 — Vista Pointe Borrower II LLC (Anthem Valley Ranch) vs. DCAD — 191st Judicial District — 2024/2025 AJ

35LEGAL5426 and 6800 Brighton Borrower Assessor Value 2023.pdf — DC-23-13108 Proposed AJ — Brighton Borrower II LLC (Lexington Apartments) et al vs. DCAD — Mar 5, 2024

36LEGALMarch2022 Windsprint $25M judge signed.pdf — Tarrant Co. 067-327426-21 — Bridge III TX Windsprint LLC (dba Windsprint) vs. Tarrant Appraisal District — 67th Judicial District — $25M AJ Mar 2022

37LEGALElliot Windsprint 2022 value $30M.pdf — Tarrant Co. 352-337697-22 — Elliot Windsprint Borrower LLC vs. Tarrant Appraisal District — 352nd Judicial District — filed Nov 30, 2022

38LEGALelliot winsprint 2023 value signed.pdf — Tarrant Co. 348-344971-23 — Elliot Windsprint Borrower LLC vs. Tarrant Appraisal District — 348th Judicial District — filed Oct 30, 2023

39LEGALElliot Windsprint 2025 $34judge signed.pdf — Tarrant Co. 017-367774-25 — Filed Dec 23, 2025 — Automated Certificate of eService — Micha Goodson on behalf of Braden Metcalf

40LEGALBrighton Borrower judge signed 2024.docx — DC-23-13108 — Brighton Borrower LLC and Brighton Borrower II LLC (Lexington Apartments) vs. DCAD — 116th Judicial District — 2024 AJ

41LEGALDocument tying Brighton Borrower to 6800 to 5426 Meadow.pdf — DC-23-13108 Original Petition — Aug 28, 2023 — ties Brighton Borrower LLC and Brighton Borrower II LLC to both 5426 and 6800 properties

42LEGAL2023 judge signed Anthem Town East.pdf — DC-23-13158 — Anthem Town East VF Borrower LLC + Anthem Town East MB Borrower LLC vs. DCAD — 192nd Judicial District — 2023 AJ

43LEGALCorrect Rialto.pdf — DBRS Morningstar Rating Report — FS Rialto 2022-FL6 Issuer LLC — Aug 25, 2022 — $365,610,184 cross-collateralized bridge loan — multiple tranches AAA to NR

44TITLE645 N Town East Blvd, Mesquite, TX 75150-4737.pdf — Dallas Co. — Anthem Town East MB / Anthem Town East VF — 461 5th Ave #16 — detailed chain of title + 541+ pages

45TITLE2103 Cottonwood Club Rd, Arlington, TX 76010.pdf — Tarrant Co. — APN 05640954 — property detail report + chain of title (340+ pages)

46TITLE9480 PRINCETON SQUARE BLVD S #2, JACKSONVILLE, FL 32256-0302.pdf — Duval Co. FL — Green Tree Borrower LLC — full chain of title + mortgage assignment

47TITLE9480 PRINCETON SQUARE BLVD S #2, JACKSONVILLE, FL 32256-0302 (1).pdf — Duval Co. FL — duplicate updated report — Green Tree Borrower LLC

48TITLE9405 ASCEND FALLS DR, WINTER GARDEN, FL 34787-6900.pdf — Orange Co. FL — 9405 Ascend Falls Owner LLC — 461 5th Ave #16 — Halston Waterleigh related property

49TITLE8745 PALM BREEZE RD, JACKSONVILLE, FL 32256-3750.pdf — Duval Co. FL — Southside Blvd Borrower II LLC — chain of title through multiple deed transfers

50TITLE2770 Roosevelt Blvd, Clearwater, FL 33760-2509.pdf — Pinellas Co. FL — Woodland Key Borrower LLC and Woodglen Borrower LLC — mortgage modification + assignment

51PERF/FUND2026 Update - POTENTIAL 2nd CAP CALL AND NO EQUITY RECOVERY Gmail - AVAF2_ January 2026 Recap.pdf — Email from investorrelations@ashcroftcapital.com (Mar 10, 2026) — "No equity recovery expected" — Halston 5 lender-led sale

52LEGAL2022 Anthem Town East Judge signed.pdf — DC-22-09092 — Anthem Town East VF Borrower LLC + Anthem Town East MB Borrower LLC vs. DCAD — 193rd Judicial District — 2022 AJ

53LEGAL2022 Marabella at Las Apartments II LLC 4805 4701 Assessor.pdf — DC-22-08642 Original Answer — Marbella Apartments II LLC / Marbella TIC LLC / Ashcroft Howard LLC vs. DCAD — filed Aug 17, 2022

54PPMAVAF2 Subscription Agreement Value.pdf — Class A and Class B LP interests — Reg D 506 offering — "Securities Have Not Been and Will Not Be Registered"

55PPMRedline to AVAF1 LPA reflecting proposed Amendment No. 1.pdf — Exhibit B Partnership Agreement — AVAF1 LP — "Interests…Subject to Restrictions on Transfer" — Delaware LP

56PPMAVAF1 - Amendment No. 1 to the LPA-719136285-v3.pdf — Effective Feb 2026 — Section 5.5(d) asset management fee waiver — executed by Ashcroft Value-Add Fund GP LLC

57PPMAshcroft Income Note Presentation - Retail.pdf — AIN: 10% annualized + 2% accrued — 99 Spots Available — $100K minimum — "Early Bird Incentive" for first $5M

58PPMAshcroftFund2offer.pdf — AVAF2 Investor Overview Deck — "A Vertically Integrated Multifamily Investment Firm" — Private & Confidential

59PPMAshcroft.pdf — AVAF2 GP LLC Investor Overview Deck — identical structure to AshcroftFund2offer — private placement materials

60PPMAshcroft Value-Add Fund III Presentation.pdf — AVAF3 Investor Overview Deck — updated Nov 22, 2022 — "Introducing Ashcroft Value Add Fund III"

61PPMAshcroft Value-Add Fund III Presentation AVAF3.pdf — Duplicate AVAF3 deck — updated Nov 22, 2022 — GP: Ashcroft Value-Add Fund III GP LLC

62PPMHalston 5 Investor Memorandum Final.pdf — 1031 Exchange Investment Opportunity — Five Property Portfolio (Atlanta + Dallas-Fort Worth) — "Investor Overview Deck — Private and Confidential" — used to raise AVAF2 equity

63PPMBraxton Waterleigh Investor Presentation FINAL.pdf — "2021 Built Trophy Property at a 5.5% Cap Rate in Orlando, FL" — Halston Waterleigh GP LLC — "Acquired with fixed-rate debt 5.55%"

64PPMtwo-pageHalston Waterleigh Overview.pdf — "Formerly Braxton Waterleigh" — 5-yr hold, 5.5% cap rate, $100 immediate rent increases projected — "Strategic Proximity: Minutes away from several other Ashcroft Capital properties"

65PPMWaterlake Fund Presentation.pdf — Halston Waterleigh GP LLC — "Ashcroft Capital" branded — 21.4MB fund presentation for Braxton/Halston Waterleigh, Orlando FL

66PPMSubscription Agreement Halston Waterleigh 061224.pdf — Class A and Class B LP Interests — Halston Waterleigh Investors LP — May 31, 2024 — Exhibit A: PPM; Exhibit B: LPA

67PPMHalston 61page Northlake.pdf — "2009 Built Value-Add, Special Financing Lender Foreclosed Property, Northlake, DFW, Texas" — fund has prior lender-foreclosed asset history

68PPMAspect Investor Memorandum.pdf — "7th Asset in the Ashcroft Value-Add Fund II" — Ashcroft Value-Add Fund II GP LLC — Private Confidential IM

69PPMPages from Private Placement Memorandum PPM - Magnolia Creek Apartments_I.pdf — 7272 Marvin D. Love LLC — Class B Member Signature Page — DocuSign B78D9A24

70PPMPPM - Magnolia Creek - 7272 - Marvin Love.pdf — Confidential PPM — 7272 Marvin D. Love LLC — Texas LLC — DocuSign 5A31093B — Investor: Rose M. Morgan, $50K

71PERFashcroftltv'ssaraandftlaud.pdf — LTV summary sheet: Midtown 501 (66%), Halston Lakeside (69%), Elliot Cocoplum (Fort Lauderdale Sep) — investor LTV presentation materials

72PERFAVAF2 Capital Call Replay _ Ashcroft Capital.pdf — Live Q&A Replay — "AVAF2 Capital Call" — investorrelations@ashcroftcapital.com — 461 5th Ave 16th Floor, New York NY 10017

73PERFAVAF1 Capital Call Uses & Projections.pdf — 2026 Capital Call breakdown: Elliot Baymeadows ($1.6M sale residual), Abernathy ($650K), Roswell ($52K), Windsprint ($550K), 3-pack ($2M through 2027)

74GOV/TCRTCRAshcroftcapitalcorr41prococo.docx — SEC TCR Submission #17272-599-007-317 — Submitted Sept 24, 2024 at 08:59:51 PM EDT — Confirmed receipt by SEC automated system

75BGSPENCER T HILLIGOSS - Comprehensive Report - 2026-03-05.pdf — Person ID 031627854217 — DOB 06/##/1983 — SSN 612-38-#### — 14 addresses — High Risk Indicator — GLBA: Fraud Prevention

76GOV/RPTadrterightAshcroftcapitalreport-2-2.docx — "False Profits: The Ashcroft Capital Story" — Submitted Sep 10, 2024 to Special Agent Luther Selby (DHS HSI Indianapolis) + USAO SDNY

77GOV/RPTexpertsfinalProject Halston Full Report.docx — Expert Report: "Project Halston — The Rialto Loan, the Ashcroft TIC Structure, and the Anthem Mesquite Agreed Judgment" — full analysis

78GOV/RPTexpert'sProject Halston Executive_Summary.docx — Project Halston Executive Summary — FS Rialto 2022-FL6 · DC-22-08841 · Core Contradiction table · "The Gap: $41,500,000 (41.7%)"

79GOV/RPThudsoncounty2025challenge$72M prop.docx — Henry County Assessor memo — Parcel 108-01026008 — 2025 appeal: $50,270,800 → settled $49,271,000, 3-yr freeze — prior 2022 appeal also settled

80TITLE4300 Jimmy Carter Blvd, Norcross, GA 30093-5058.pdf — Gwinnett Co. GA — chain of title documents — 12+ pages of recorded instruments

81TITLE550 Abernathy Rd, Atlanta, GA 30328-3697.pdf — Fulton Co. GA — Elliot Abernathy — chain of title — Georgia Superior Court images

82TITLE2691 Charleston Town Pl, Orlando, FL 32839-5067.pdf — Orange Co. FL — Park Central Orl Borrower LLC — 461 5th Ave #16 — property detail + chain of title (144+ pages)

83TITLE2145 US HIGHWAY 80 E, MESQUITE, TX 75150-5558.pdf — Dallas Co. TX — Pleasanton Housing Finance Corporation — amended deed of trust — note: different owner from standard Ashcroft

84TITLE2103 Cottonwood Club Rd, Arlington, TX 76010.pdf (Tarrant Co.) — APN 05640954 — owner history + financing instruments — 340+ page comprehensive title report

85PERF/XLSExpertCostarRialtoandPGIM.xlsx + abrightashcroftpostrere.xlsx + Comp Plan_Clients_WHC Woodridge example.xlsx — Expert analytical workbooks: CoStar Rialto/PGIM cross-reference, post-RERE Ashcroft analysis, compensation plan comparisons

Exhibit A-1 — Instagram Sponsored Advertisement

The following sponsored advertisement was published by @ashcroftcapital on Instagram/Facebook targeting prospective investors with a specific return figure for Reg D securities offerings.

Ashcroft Capital Instagram Sponsored Ad — 25.6% Annualized Cash-on-Cash Returns

@ashcroftcapital · Sponsored · "25.6% Annualized Cash-on-Cash Returns" · "ACCREDITED INVESTORS: INVEST MULTIFAMILY / Expand Your Portfolio Beyond The Stock Market" — Flag B-1 + Flag C-1 + Flag C-2

DISCLAIMER: This analysis was prepared by Barry Minkow under the Minkow 1-10 Deterministic Fraud Risk Scoring System for informational and educational purposes. All facts stated herein are derived from publicly recorded court documents, government agency submissions, title search reports, fund offering documents, and sworn declarations on file. Nothing contained in this report constitutes legal advice, investment advice, or a legal finding of fraud, criminal conduct, or civil liability. SEC TCR #17272-599-007-317, FHFA OIG submission (Aug 10, 2025), and FIRREA Declaration (12 U.S.C. § 1833a) have been submitted to the appropriate federal authorities and are under their respective review processes. All persons named are presumed innocent of criminal wrongdoing unless and until adjudicated otherwise by a court of competent jurisdiction. Investors should conduct independent due diligence and consult qualified legal and financial advisors before making any investment decision. This report does not constitute a securities offering or solicitation. InvestSafe Pro™ — Minkow 1-10 Case Study #5 — July 2026.