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 firstname.lastname@example.org for a free and confidential case evaluation.