Tag Archives: UDF IV

Thomas Bodensteiner-Former VSR Financial Services Broker-Subject of Customer Suit Over Losses in UDF IV-Clear Lake, IA

February 2018 – Clear Lake, Iowa

The FINRA records of  Thomas W. Bodensteiner ,  a  stockbroker who was previously  employed by  VSR Financial Services  discloses a pending customer dispute .

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

 

In FINRA arbitration #17-0314 a customer of VSR Financial Services alleges unsuitability, negligence and misrepresentation in connection with investments in real estate securities and United Development Funding IV (UDF IV). Damages sought are $50,000.

Bodensteiner was employed by VSR Financial Services from 10/2001-9/2016. He is currently employed by Summit Brokerage Services.  

If you have losses in an account in an account handled by Thomas W. Bodensteiner or another broker who was employed by VSR Financial Services , contact us to discuss how you may be able to recover damages for those losses.

VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments . In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

 VSR wound down operations at the end of 2016 and transferred most of their brokers and customer accounts to Summit Brokerage ServicesSee this for more information regarding VSR Financial Services.

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

John G. Lewis III-Former VSR Financial Broker-Discloses Customer Dispute Over UDF Investment-Arlington, MA

April 2017-Arlington, MA

The FINRA records of  John G. Lewis III ,  a  stockbroker who is currently  employed by  Summit Brokerage Services  disclose a pending customer dispute over investments in United Development Funding.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 12/2016 a customer filed a claim seeking an unstated amount of damages on investments in various United Development Funding investments: UDF II, UDF III, UDF IV and UDF V.

United Development Funding’s Office Raided by the FBI-for more information on recent problems for UDF, follow this link.

Lewis has been employed by Summit Brokerage Services since 9/2016. Prior to that he was employed by VSR Financial Services from 5/2005-9/2016.

VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments . In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

 VSR wound down operations at the end of 2016 and transferred most of their brokers and customer accounts to Summit Brokerage ServicesSee this for more information regarding VSR Financial Services.

If you have questions about an account  handled by John G. Lewis III call for a no charge consultation.

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

Thomas W. Bodensteiner-Former VSR Financial Services Stockbroker-Discloses Customer Dispute Over UDF-Clear Lake, IA

April 2017-Clear Lake, IA

The FINRA records of  Thomas W. Bodensteiner ,  a  stockbroker who was formerly  employed by  VSR Financial Services  disclose a pending customer dispute over an investment in United Development Funding IV (UDF).

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Bodensteiner , who operates Bodensteiner Investments  in Clear Lake, IA discloses that  FINRA arbitration 17-0314 was  filed by a VSR Financial Services customer in 2/2017. The customer alleges damages of $50,000 for unsuitability, negligence and misrepresentation related to the investment in United Development Funding IV.

The offices of UDF were raided by the FBI in 2016. See this for more information on United Development Funding. 

Bodensteiner was registered with VSR Financial Services from 10/2001-09/2016 and is currently registered with Summit Brokerage Services, a related entity .

VSR wound down operations at the end of 2016. See this for more information regarding VSR Financial Services.

VSR Financial Services was fined $550,000 by the Financial Industry Regulatory Authority (FINRA) in May 2013 in connection with the sale of alternative investments similar to United Development Funding. In their findings, FINRA criticised VSR Financial for recommending high concentration levels of alternative investments in customer accounts and for its lack of supervision over the use of consolidated reports prepared by brokers and provided to customers.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

If you have losses in an account in an account handled by Thomas W. Bodensteiner or another broker who was employed by VSR Financial Services , contact us to discuss how you may be able to recover damages for those losses.

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

How to Recover Losses on United Development Funding IV (UDF IV)

March 2017

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

How To Recover Losses on United Development Funding Investments.

February 22, 2016

United Development Funding IV announced today in a filing with the Securities & Exchange Commission that the FBI raided their office in Grapevine last week and that they are in receipt of subpoenas from a grand jury for the U S District Court for the Northern District of Texas seeking company documents.

The share price of UDF IV has dropped from just over $17 in December 2015 to barely over $3 when trading was halted last week.

UDF

UDF IV 90 Day Chart

Recovery Option for Investors Who Suffered Losses 

on UDF Investments

 

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

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

 

 

 

United Development Funding Offices Raided by FBI- Grapevine, Texas

February 19, 2016- Grapevine, Texas

The FBI raided the offices of United Development Funding (UDF) yesterday causing the shares of its largest fund United Development Funding IV to fall over 50%, before trading was suspended. In December 2015 UDF IV was trading at over $17. At the time of this writing it is trading at just over $3.

UDF

UDF IV 90 Day Chart

 

UDF is based in Grapevine, Texas, and was founded in 2003. The company sells shares to investors and loans the money to real estate companies. Over $1 billion has been raised by UDF from mostly individual investors, many of which are older retired individuals who purchased the UDF  real estate investment trusts (REITs) seeking safe, dependable fixed income.

The Wall Street Journal (WSJ) published an article earlier this week that highlighted risks related to the UDF business model, including the following:

  • UDF IV Loans are Concentrated Geographically– while also operating in North Carolina, South Carolina and Florida, 99% of the UDF IV portfolio consists of loans made to borrowers in Texas, which is contrary to representations made to investors that UDF IV has portfolio diversification by submarket and loan type. Closer examination reveals that 68% of the loans are in the Dallas area, the WSJ reports.
  • UDF IV Loans are Concentrated to Single Borrower– 67% of its loans are to a single borrower, Centurion American Development and its affiliates.
  • UDF III Loans are Concentrated Geographically– 86% of its loans are secured by Texas properties.
  • UDF V Loans are Concentrated Geographically– 100% of it loans are secured by properties in Texas.

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