The Peiffer Wolf Carr & Kane securities practice attorneys Jason kane 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 Wolf Carr & Kane Attorneys Investigating UDF
The Peiffer Wolf Carr & Kane 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 Wolf Carr & Kane 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 Wolf Carr & Kane 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 Wolf Carr & Kane for a Free Evaluation
Peiffer Wolf Carr & Kane’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 Wolf Carr & Kane, Jason kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 216-589-9280, via email at firstname.lastname@example.org, or through the contact form on this website.