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 signed by Chief Executive Officer Hollis Greenlaw. The company also stated that there can be no assurance that it will be able to file such periodic reports. Typically, companies like UDF IV are subject to reporting requirements by the SEC, which include filing public quarterly reports on their financial condition. UDF IV has not yet filed an annual report for the year ended December 31, 2015, or a quarterly report from either of the first two quarters of 2016.
Over the past year, UDF IV has been rocked by allegations from a hedge fund that it used new investor money to pay older investors. Its auditor declined to stand for reappointment, its share price collapsed to approximately $3.20 before its trading was halted, and UDF’s offices were raided by the Federal Bureau of Investigation (“FBI”) pursuant to a federal search warrant. UDF IV also disclosed that it entered into a forbearance agreement with one of its lenders when it was unable to service a loan made to it. As of this time, UDF IV and its officers and directors have not been found liable by a court of law, and everyone is presumed innocent until and unless found guilty or liable by a court of law.
The securities practice attorneys at Peiffer Rosca Wolf are continuing their investigation. They have spoken with numerous UDF investors and have been retained by many investors to attempt to recover their UDF investments. They take most cases of this type on a contingency-fee basis and only get paid out of funds recovered on behalf of investors. UDF investors who believe they have lost money may contact Alan Rosca or James Booker for a free, no-obligation discussion about this matter, toll-free at 888-998-0520, by email at firstname.lastname@example.org, or through the contact form on this website.
United Development Funding IV Announces Extension of Forbearance Agreement With Lender
Texas-based real estate investment trust United Development Fund IV (“UDF IV”) announced on Wednesday, August 10, that it entered into an extension with one of its lenders after it defaulted on a $35 million loan. The announcement was made in a filing with the Securities and Exchange Commission (“SEC”). In the filing, UDF IV stated that it extended a forbearance period with its lender until September 30, 2106. The forbearance agreement was originally announced because UDF IV reportedly defaulted on the loan to the lender. According to the filing, the forbearance period will be terminated if the loan is repaid, if an event of default occurs, or UDF IV fails to meet certain other terms of its agreement.
UDF IV has been in continuous tumult since last fall, when its auditor declined to stand for reappointment and allegations by a Texas hedge fund surfaced that UDF IV and other related programs may be engaged in Ponzi-scheme like payments from newer investors to older investors. UDF disclosed an SEC investigation since 2014. Since then, the Federal Bureau of Investigation has raided UDF’s offices pursuant to a federal warrant, UDF IV has missed a number of required SEC filings, and trading of its shares has been halted on a national stock exchange after the share price plummeted. As of this time, UDF IV has not been re-listed on any national stock exchange.
The securities practice attorneys at Peiffer Rosca Wolf, Alan Rosca and James Booker, have been investigating UDF and have taken action to recover funds on behalf of investors in various UDF programs. They have spoken with large numbers of UDF investors and have been retained by many investors to recover funds. Investors in UDF who believe they have lost money may contact Alan Rosca or James Booker for a free, no-obligation evaluation of their options, toll-free at 888-998-0520, by email at email@example.com, or through the contact form on this website. The firm usually takes cases of this type on a contingency-fee basis, and only get paid out of funds recovered on behalf of investors.