United Development Funding (UDF) Investment Losses Lawyers Based in New York
Providing Reliable Advice & Guidance to Clients Nationwide
For clients who have invested in United Development Funding (UDF) funds, you may have suffered investment losses. The funds have been tied to an immense investment scheme that works like Ponzi and have raked close to $1 billion in investments. Non-traded real estate investment trusts (Non-Traded REITs) are part of the UDF suite which comprises various other investment branches. If you or anyone you know have suffered UDF investment losses, seek legal help immediately to learn about your options.
Our attorneys at Weltz Law possess ample field experience to help you understand the situation better before walking through the necessary legal processes as a team. Call (877) 905-7671 today.
What Are UDF Investment Losses?
The funds that are associated with United Development Funding comprise United Development Funding II, L.P., United Development Funding L.P., United Development Funding III, L.P., United Development Land Opportunity Fund, L.P., United Development Funding Income Fund V, and United Development Funding IV, UDF 2013 – 1. The United Development Funding IV fund is a publicly traded real estate investment trust. It massively plunged to nearly 50% of its value after UDF was alleged to have operated its REIT programs like a Ponzi scheme.
How Do United Development Funding (UDF) Investment Losses Work?
It was alleged that the United Development Funding IV fund had made false statements that may have misled investors into believing information that is untrue regarding its operations.
It has also omitted the following crucial information during disclosure to investors:
- Succeeding UDF REIT establishments deliver substantial capital and liquidity to prior UDF establishments for the repayment of initial investors.
- If the latest UDF establishment funding were stopped, the prior UDF establishments would not have any means of operating.
- UDF IV produced liquidity to UMT, UDF I, and UDF III that make up an investment scheme.
- UDF IV was functioning just like Ponzi which involved new capital covering up for earlier investments.
- UDF IV failed to reveal that the establishment was having its operations investigated by the Securities and Exchange Commission.
- UDF IV projected business representations that were misleading.
Identifying United Development Funding (UDF) Investment Losses
You need to first be aware that Non-Traded REITs are speculative investments which makes them highly risky and unsuitable for investment. Thus, promoters would often be over-selling their products related to Non-Traded REITs which also project several conflicts of interests and do not involve full transparency. Promoters know that the industry basically subjects itself to complaints from clients and regulatory as they are known to inappropriately make investment compensations. Hence, they are always making huge promises that sound too good to be true during the initial stage.
When you engage us, you can rest assured that our attorneys will advocate tirelessly for your interests. You can call Weltz Law at (877) 905-7671, or simply fill out our online form to schedule a meeting regarding your case.
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