Richard A. Silfen chairs the three-man special committee. It has engaged Banc of America Securities and Credit Suisse Securities USA as financial advisors and locally based Dechert as independent legal counsel. Holloway has hired Morgan Stanley and Co. as his financial advisor.

Among the alternatives Holloway is evaluating in respect to his ownership interests in GMH is a potential offer to acquire the company. No such offer has been made. "The company does not intend to comment further on Holloway's actions or intentions," according to a statement.

A letter to the company's audit committee from GMH's then-CFO, Bradley Harris, prompted the ongoing investigation. It alleges, "a 'tone at the top' problem with company management." Harris has since been fired, and class action suits against GMH, Holloway and Harris, have been filed with the US District Court of the Eastern District of Pennsylvania.

A company spokesperson issued a statement saying, "We believe these claims are without merit." Meanwhile, GMH stock has dropped from a 52-week high of $17.10 a share on March 1, to $11.88 a share at the open of the NYSE today.

GMH, which specializes in military and student housing, made its initial public offering as a REIT on the NYSE in October 2004. It has said its fourth-quarter and year-end 2005 financials will be released no later than May 15.