Investors who have suffered losses on United Development IV (UDF IV) may be able to recover damages through FINRA arbitration, a dispute resolution process that is much more expedient than typical court litigation.
UDF IV , a real estate investment trust (REIT) was marketed to investors as an entity that would generate income by investing in low risk loans and the profits from the sale of real estate.
FBI RAIDS UDF OFFICES-In February 2016, the FBI raided the home office of UDF in Grapevine, Texas, seizing documents and records. Subsequently UDF IV disclosed receipt of a grand jury subpoena by the company and its executives. In addition the company disclosed receipt of a Wells Notice from the SEC. Share trading was suspended and share prices fell to $3.20.
TENDER OFFER @ $1.25 SHARE-SCM Special Fund and Lemon Creek Advisers, affiliates of Mackenzie Capital Management and Sutter Capital Management have recently offered to buy up to 1.6 million shares of UDF IV for $1.25 a share. This offer, which constitutes just over 5% of the outstanding shares expires May 5th, 2017.
UDF IV has not filed any quarterly financial documents since November 2015 and has advised the SEC that it will not meet its deadline for the 2016 year end report. Kyle Bass, a hedge fund manager and founder of Hayman Capital Management has publicy accused UDF of operating a ‘Ponzi like real estate scheme’.
Investors who suffered losses as a result of investing in UDF IV may be able to recover damages. Contact us for a no cost consultation to discuss your options.
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.
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