CMD Investigating Claims On Behalf of Investors Who Purchased Shares of United Development Funding IV (Symbol: UDF)

Securities law firm Carmel, Milazzo & DiChiara LLP (CMD) is investigating claims on behalf of investors who own or purchased shares of United Development Funding IV (Nasdaq: UDF).

The Securities and Exchange Commission (SEC) has issued a Wells notice against UDF, an indication that SEC staff has made a preliminary determination to possibly recommend an enforcement action against the company.  Further, the Nasdaq stock market has delisted UDF IV shares.

The UDF family of REITs have been in turmoil for almost a year.  A hedge fund with a short position in UDF IV shares last December said the company had been operating for years like a Ponzi scheme.  Then, the FBI in February raided the REIT’s offices in suburban Dallas.  At the time, Nasdaq halted trading of UDF IV shares at $3.20, down 81% over the prior 12 months.

UDF IV, with $684 million in assets according to SEC filings, is a mortgage and development REIT.  UDF branded REITs and private deals were high yield offerings, promising investors returns of 8% to 10%.  Various UDF REITs, including UDF IV, have halted paying investors distributions over the past year.  UDF IV was a nontraded REIT that listed on Nasdaq in June 2014.  It was sold to investors from 2009 to 2013 at $20 per share.

During the last few months, UDF IV has publicly claimed that it was working to file its 2015 annual reports and its last three quarterly reports with the SEC in order to begin trading again. However, this never happened.

If you or someone you know lost money investing in shares of United Development Fund IV , UDF IV or any of the UDF REITs , you may be entitled to recover your investment losses through FINRA arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.

CMD Investigating Claims Over AlphaSector Strategy ETFs

Securities law firm Carmel, Milazzo & DiChiara LLP (“CMD”) is investigating 13 management firms over investments of client money into AlphaSector Exchange Traded Funds (“ETFs”).   The AlphaSector strategy was developed by F-Squared Investments which has since admitted in an enforcement case brought by the United States Securities and Exchange Commission (“SEC”) that its purportedly “real” past performance record was inflated and back-dated.

On August 25, 2016, the SEC announced it has penalized 13 investment management firms for violating the securities laws.  The SEC claimed that the firms marketed and recommended the AlphaSector strategy to their clients based on false and misleading advertising about the past track record.   The SEC claimed that the firms accepted F-Squared’s false statements and failed to conduct their own investigation of the past performance of the strategy.

The investment management firms penalized by the SEC are:

AssetMark

BB&T Securities

Banyan Partners

Congress Wealth Management

Constellation Wealth Advisors

Executive Monetary Management

HT Partners

Hilliard Lyons

Ladenburg Thalmann Asset Management

Prospera Financial Services

Risk Paradigm Group

Schneider Downs Wealth Management Advisors

Shamrock Asset Management

If you or someone you know lost money investing in AlphaSector Exchange Traded Funds (“ETFs”), you may be entitled to recover your investment losses through either litigation or arbitration. CMD accepts cases on a contingency fee basis, which means we only get paid if you get paid.  Your time to file a claim may be limited, so contact us today at (212) 658-0458 or contact@cmdllp.com for a free and confidential case evaluation.