March 23, 2017 Comments (0) Current Investigations

Mackenzie Affiliates Extend Offer to Purchase UDF IV Shares

UDF IV
(Last Updated On: March 23, 2017)

Recovery of Investment Losses in United Development Funding IV (UDF IV)

Have you suffered losses investing in United Development Funding IV (UDF IV)? If so, The White Law Group may be able to help through FINRA arbitration.

United Development Funding IV is a Maryland real estate investment trust listed on The NASDAQ Global Select Market. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate.

On February 18, 2016, the FBI raided United Development Funding IV’s office in Grapevine, Texas and seized documents and computers pursuant to a warrant signed by a federal judge. United Development Funding IV also disclosed that it received a grand jury subpoena.

On the same day, share prices of UDF IV fell to $3.20 before trading was suspended. This follows after the Securities and Exchange Commission began its investigation into United Development Fund IV in 2014 and after famed hedge fund manager Kyle Bass alleged that UDF was using new investor money to pay existing investors, therefore perpetuating a Ponzi-like scheme. UDF denied any wrongdoing.

Trading in UDF IV’s stock has been suspended since February 18, 2016, and no assurance can be given regarding the resumption of regular trading.

Latest Tender Offer

SCM Special Fund 3 And Lemon Creek Advisers, affiliates of Mackenzie Capital Management and Sutter Capital Management respectively, have offered to purchase nearly 1.6 million shares of United Development Funding IV for $1.25 each. The offer, which constitute 5.05 percent of the outstanding shares, expires on May 5th.

The purchasers and their affiliates currently own 844 shares of UDF IV and will pay approximately $1.9 million if all shares in the current offer are tendered. UDF IV has 1,775 holders of record owning nearly 30.7 million shares.

The White Law Group has handled dozens of FINRA arbitration claims against brokerage claims involving those firms improper sale of UDF investments, including UDF III and UDF IV.

Brokers have a fiduciary duty to perform due diligence on any investment and to ensure that investment recommendations are consistent with their client’s age, net worth, risk tolerance, investment experience and objectives, risk tolerance. If a broker overlooks suitability requirements, investors may have an actionable claim to recover their losses in a product in a claim through FINRA dispute resolution.

Free Consultation

For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.