Concerned about investment losses in United Development Funding III (UDF III)?
Have you suffered losses investing in United Development Funding III (UDF III)? If so, The White Law Group may be able to help you through FINRA arbitration.
According to their website, “Historically available to large institutional investors, UDF III offers the individual investor the opportunity to participate in an attractive alternative to traditional real estate investments. Our investment approach for UDF III is based on an established business model, extensive real estate finance experience and strategic, long-standing relationships in the housing industry.”
The White Law Group continues to investigate the liability that brokerage firms may have for recommending UDF to its clients. The firm has handled a number of claims involving UDF over the years. In those claims, the firm has alleged, among other things, that the UDF investments were
- high-risk and unsuitable for our clients given their financial situation, needs and investment objectives,
- that the risks of the investment were not fully disclosed to them, and
- that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the UDF investments (as the firms are required to do by FINRA Rules).
Bad news for investors
-In September, LPsales.com, a secondary market for private placements, sold shares of UDF III for only $3.50 per share. This is at a significant loss to investors.
-On October 18th, in a filing with the SEC, United Development Funding III, L.P. announced it has received a “Wells Notice” from the staff of the SEC’s Division of Enforcement stating that the Staff has made a preliminary determination to recommend that the SEC file an enforcement action against the Partnership alleging violations of certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Certain individuals associated with the Partnership and its general partner also received similar Wells Notices. (A Wells Notice is preliminary determination by the Staff that it may recommend to the SEC that a civil enforcement action or administrative proceeding be brought against the recipient.)
The firm continues to investigate claims involving United Development Funding I, United Development Funding II, United Development Funding III, and United Development Funding IV.
Recovery of Investment Losses
If you suffered losses investing in United Development Funding III and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.