Category Archives: Stock Shorting

Texas REIT United Development Funding IV Receives Grand Jury Subpoena Following FBI Raid

February 22, 2016- Grapevine, Texas

United Development Funding IV (UDF IV)  reports that they have been subpoenaed to turn over company documents to a grand jury.  In an SEC filing (Form 8-K) made on February 22, 2016, the company states the following:

“Item 8.01 Other Events.

On February 18, 2016, law enforcement authorities executed a search warrant at the corporate office of United Development Funding IV (the “Trust”) in Grapevine, Texas. The search warrant was issued by a Magistrate Judge of the United States District Court for the Northern District of Texas. In addition, law enforcement officers served executive officers of the Trust and certain other employees of the Trust’s advisor and its affiliates with grand jury subpoenas seeking the production of documents related to the operations of the Trust.  The Trust does not believe that it, its officers or the employees of its advisor and its affiliates have violated any laws or regulations, and the Trust intends to cooperate fully with the government’s investigation. The Trust cannot, however, predict what additional action, if any, government authorities might take in the future.

In addition, on February 18, 2016, the Trust received notice that trading of the Trust’s securities on The NASDAQ Global Select Market (“NASDAQ”) has been halted pending a review by NASDAQ of certain information regarding the Trust and its business requested pursuant to a letter dated February 19, 2016. No assurance can be given regarding the resumption of the trading of the Trust’s securities.”

Last week the FBI raided the offices of UDF IV, which are located in Grapevine, a suburb of Dallas, causing the share price to drop by nearly 60% to just over $3, causing trading to be halted.  See this for more information. 

UDF reported in December 2015 that the SEC has been investigating the company since April 2014. Company officials claim the company is a victim of manipulation by stock traders who build up a short position with the intention of unlawfully manipulating its shares.

Recovery Option for Investors Who Suffered Losses on UDF 

Brokers have a duty to make suitable recommendations to investors. You may be able to recover damages from the brokerage firm that sold you the investment if the recommendation was not suitable for you taking into account your age, health and level of financial sophistication.

Brokers also have a duty to conduct an independent due diligence review of investments before offering the product for sale.

Call to discuss how you may be able to recover damages through FINRA arbitration, a process much more expedient & efficient than court litigation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

 

 

Top 10 Scams Targeting Seniors- National Council on Aging

According to a recent article from the NCOA (National Council on Aging) financial scams targeting seniors are so prevalent they are considered “the crime of the 21st century”.

The NCOA lists the following potential scams. See the full article here on the NCOA website:

1-Health Care/ Medicare/ Health Insurance Fraud
2-Counterfeit Prescription Drugs
3-Funeral & Cemetary Scams
4-Fraudulent Anti-Aging Products
5-Telemarketing
6-Internet Fraud
7-Investment Schemes
8-Homeowner/Reverse Mortgage Scams
9-Sweepstakes & Lottery Scams
10-The Grandparent Scam

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900