Erez Law Attorneys Investigate United Development Funding (UDF) Investment Losses
Posted on Tuesday, March 22nd, 2016 at 8:00 am
The investment loss attorneys at Erez Law are available to represent individuals who invested in United Development Funding (UDF) real estate investment trusts (REITs) through independent broker-dealers.
In 2014, the Securities and Exchange Commission (SEC) began investigating United Development Funding (UDF) for possible investment fraud. The SEC’s investigation focused on the sale of investments in United Development Funding I, United Development Funding III, United Development Funding IV, and United Development Funding V to individual investors through independent broker-dealers.
While UDF has claimed that its real estate investment trusts (REITs) are, “fundamentally sound investments in affordable residential real estate.” the firm has been accused of operating essentially as a Ponzi scheme – using new investors’ funds to repay earlier investors. With the share price of publicly-traded United Development Funding IV falling by more than 80 percent, UDF is now facing numerous investor lawsuits, in addition to investigations by the SEC and – more recently – the FBI.
If you suffered losses in UDF investments, you may be entitled to financial compensation. At Erez Law, a Florida investment fraud law firm, we are actively seeking our claims against UDF. To find out if you may be able to recover your losses, schedule a free consultation now.
UDF manages a series of traded and non-traded real estate investment trusts, including United Development Funding IV. According to reports, for the past several years, UDF has used capital invested in new investment vehicles to bail out its other entities when they could not repay their investors. Based on these allegations, a well-known and highly-respected hedge fund manager has accused UDF’s management of “misleading investors and . . . preying on “Mom and Pop” retail investors.
According to the firm’s website, all sales of UDF investments are conducted through independent broker-dealers. In total, UDF has reportedly raised approximately $1 billion from retail investors through these brokerage sales.
Broker-Dealers that Sold UDF Investments
There are several independent broker-dealers that have been confirmed to have sold UDF REIT investments to retail investors. These include, but are not limited to:
- IMS Securities Inc.
- Berthel Fisher & Co. Financial Services Inc.
- Centaurus Financial Inc.
- VSR Financial Services Inc.
What to Do if You Lost Money in UDF Investments
Before selling investments such as REITs, brokerage firms are required to conduct appropriate due diligence. They must also continue to monitor the investment opportunities they sell over time. Based on our investigation, we believe that many of the broker-dealers that sold UDF investments should have done more to protect their clients.
If you lost money in a UDF REIT, we urge you to contact us for a free consultation. We may be able to help you recover your losses. Contact us to learn more.
Did You Invest in UDF Real Estate Investment Trusts through a Broker-Dealer?
Located in Miami, FL, Erez Law represents investors throughout the United States, Mexico, and South America. If you suffered investment losses in a United Development Funding REIT, we want to hear from you. Call (888) 840-1571 or contact us online to speak with one of our attorneys for free today.