The Peiffer Rosca Wolf securities practice attorneys Alan Rosca and Joe Peiffer are investigating the activities of United Development Funding (“UDF”) on behalf of investors in United Development Funding I, United Development Funding III, United Development Funding IV, and United Development Funding V. They are evaluating legal options on behalf of investors in those programs, including investors who purchased before June, 2014.

The Securities and Exchange Commission began its UDF investigation in April, 2014. UDF IV’s share price recently plummeted following allegations of Ponzi-like payments to existing investors with new investor money. In November, 2015, an UDF board member resigned and the auditor of UDF IV and the other public UDF affiliates auditor declined to stand for reappointment after having been approved by shareholders, without indicating that such declination is the result of any misconduct.

Class action lawsuits on behalf of some – but not all – of the UDF IV investors have recently been filed. UDF IV denied any misconduct.

Famed Hedge Fund Manager Claims UDF Management Is Perpetuating a Ponzi-like Real Estate Scheme

Famed hedge fund manager Kyle Bass, who predicted the 2008 subprime mortgage crisis, alleged on his website, www.udfexposed.com, that UDF is using new investor money to pay existing investors, therefore perpetuating a Ponzi-like scheme. Mr. Bass also claims UDF took advantage of investors by “using the complexity of real-estate backed loans and a UDF-controlled web of related entities to obscure the fact that UDF is using new investors’ money to make payments to existing investors, and thereby perpetuating the scheme.”  For more information about Mr. Bass’ position, as well as his trading in UDF IV, visit his website, www.udfexposed.com (Mr. Bass, his website, and his fund are not related in any way to this law firm or website).

Mr. Bass also singled out some of the investment advisors and brokerage firms that helped raise money for UDF programs from investors by “sacrificing best interest of clients for high fees and commissions.”

In a recent letter to investors, UDF IV disputed any allegations of misconduct.  The UDF IV share price plummeted following the allegations.

Peiffer Rosca Wolf Attorneys Investigating UDF

The Peiffer Rosca Wolf securities attorneys are investigating a number of different areas of concern on behalf of UDF investors, including investors who invested in UDF programs prior to June, 2014. The Peiffer Rosca Wolf attorneys are investigating, among others, whether or not UDF and its public affiliates, UDF I, UDF III, UDF IV, and UDF V, have engaged in any Ponzi-like activities or other misconduct involving loans and payments to affiliates and related entities.

The Peiffer Rosca Wolf securities lawyers are also investigating a number of brokerage firms’ sales practices involving recommendations for investors to invest in United Development Funding I, United Development Funding III, United Development Funding IV, United Development Funding V, and/or other investment programs sponsored by UDF.

Importantly, the allegations reported on this blog are just that and no finding of misconduct has been entered at this time by any court of law against UDF, its affiliates, control persons, or management.  Everyone is presumed innocent until and unless found guilty or liable by a court of law.

Contact Peiffer Rosca Wolf for a Free Evaluation

Peiffer Rosca Wolf’s securities practice attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting UDF investors with the recovery of their losses, including investors who invested in UDF programs prior to June 2014. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520, via email at arosca@prwlegal.com, or through the contact form on this website.

Important Case Updates

UDF IV investors, together with investors in other UDF programs including UDF V and UDF III, continue to file claims against their broker-dealer firms through the Peiffer Rosca Wolf law firm. The Peiffer Rosca Wolf law firm’s securities lawyers have been filing new cases on behalf of UDF investors harmed by their investment in several… Read more »

United Development Funding investors represented by the Peiffer Rosca Wolf lawyers have started filing cases against brokerage firms that improperly recommended that they invest in UDF products. In the wake of recent news that UDF IV had received a Wells Notice informing it of the Securities and Exchange Commission’s intention to pursue enforcement action, and… Read more »

United Development Funding, a Texas-based real estate investment trust announced UDF investors yesterday that UDF IV would be delisted from trading on NASDAQ following its failure to timely file its financial statements after a second extension, and in the wake of its receipt of a “Wells Notice” from the Securities and Exchange Commission (“SEC”). A… Read more »

Embattled Texas-based real estate investment trust United Development Funding IV (“UDF IV”) stated that it was unable to timely file a quarterly report required by the Securities and Exchange Commission (“SEC”) in a filing on Wednesday, August 10. UDF IV reported its failure in a document filed with the SEC on Wednesday. The filing was… Read more »

​On Thursday, United Development Funding IV (“UDF IV”) issued a press release stating that it received notice on May 26, 2016, from NASDAQ that the NASDAQ determined to delist UDF IV securities unless UDF IV met certain conditions. In the press release, UDF IV indicated that NASDAQ determined that UDF IV was not in compliance… Read more »

United Development Funding IV, the embattled UDF-sponsored program, disclosed yesterday in a filing with the Securities and Exchange Commission that it had defaulted on a $35 million loan and had entered into a forbearance agreement with the lender. According to the filing, UDF IV acknowledged that certain events of default had occurred and stated that… Read more »

United Development Funding IV’s (“UDF IV”) value on some investors’ statements has now been reduced to zero, the Peiffer Rosca Wolf investor right lawyers have learned.  Trading of UDF IV shares on a national stock exchange was halted in February after news that the Federal Bureau of Investigation (“FBI”) raided UDF’s Texas offices and removed… Read more »

United Development Funding V (“UDF V”) recently filed a notice with the Securities and Exchange Commission (“SEC”), stating that it would be unable to timely file required SEC reports including its annual report. UDF V is part of the United Development Funding family of companies, which includes UDF IV and UDF III, which are currently… Read more »

Texas-based United Development Funding (“UDF”) recently suspended distribution payments to investors in the UDF III fund. The company had been paying distributions on a monthly basis. This announcement comes after recent news surrounding UDF including allegations of being a Ponzi scheme made by a hedge fund investor, the resignation of a UDF IV board member,… Read more »