On Aug. 26, federal and state officers conducted a coordinated raid on the offices of Cadence McShane Construction Co. LLC in Austin, San Antonio and Plano, Texas. Witnesses reported about 15 agents entering the Austin location at Three Barton Skyway, located at 1221 South MoPac Expressway, and later leaving with boxes and confiscated cell phones.
Company response
Srinath Kasturi, executive vice president for the Austin office, confirmed the activity at all three sites. He said the investigation involved a government agency obtaining records related to a prior HUD‑financed project. Kasturi identified the agency as the U.S. Department of Housing and Urban Development (HUD) and emphasized that Cadence fully cooperated, providing all requested information.
Agency involvement
Representatives from the Texas Department of Public Safety were on the scene assisting HUD, while the Austin Police Department confirmed it was not involved. HUD officials have not yet commented publicly on the raid.
Background on Cadence McShane Construction
Cadence McShane is a prominent general contractor in the region, known for projects such as the ’68 luxury apartments at Hemisfair. The firm ranked No. 11 on the Austin Business Journal’s list of largest area general contractors, reporting $315.3 million in construction billings in 2025 and employing 79 local workers.
Legal context
Kasturi noted that the project under review is subject to a lawsuit stemming from a former employee’s complaint. He said the U.S. Department of Justice chose not to pursue the substantive allegations. The U.S. Attorney’s Office has not responded to requests for comment on any potential inquiry.
“We feel very strongly the whole matter is without merit, but we have to go through the process,” Kasturi said, adding that the company takes pride in its long‑standing relationship with HUD and its track record delivering affordable housing, including multifamily and senior‑living projects.
What’s next
The investigation appears ongoing, with Cadence McShane continuing to cooperate with federal authorities. No arrests or detentions were reported.
Original reporting: San Antonio, TX News (HLL/CB) — read the source article.
