United Development Funding (“UDF”) has come under fire in recent months – being accused of operating like a “Ponzi scheme.” It has allegedly disclosed that since April 2014, it has been under SEC investigation.
UDF operates several publicly-traded and non-traded Real Estate Investment Trusts (REITs) along with other real estate related companies, according to reports. UDF reportedly operates in a manner that is different from traditional REITs – in that its assets are not real estate holdings, but rather development loans that it originates.
The UDF fund family is reportedly comprised of four public companies – United Mortgage Trust (non-traded), UDF III (non-traded), UDF IV (publicly traded symbol: UDF), and UDF V (non-traded).
The publicly traded UDF IV has declined in value from upwards of $18 per share to roughly $7 per share in only a few short months. This means that those who invested in this public fund may have suffered losses of more than 50% seemingly overnight. Meanwhile, those investors in the non-traded UDF III, UDF V, and United Mortgage Trust may find themselves with highly illiquid investments and potentially heavy losses.
If you or a family member invested in United Development Funding, you should contact our offices to explore your legal rights and options. You can contact the investment fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.
Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel.