Several firms that sold United Development Funding (UDF) real estate investment trusts (REITs) could face arbitration claims from investors who lost money in the now-collapsed United Development Funding IV non-traded REIT and other UDF products, according to the InvestmentNews.
The FBI raided UDF's offices in mid-February, indicating a potential criminal investigation on top of the SEC's own investigation into UDF's REIT transactions, which at least one hedge fund has compared to a "Ponzi scheme."
The Ponzi scheme allegations first surfaced in early December 2015, although UDF shares on NASDAQ continued trading until February 18, 2016—three months after the words "Ponzi scheme" first surfaced.
Some firms that have sold the UDF REITs to investors include:
> Berthel Fisher & Co. Financial Services Inc.
> Centaurus Financial Inc.
> IMS Securities Inc.
> Realty Capital Securities (Owned by RCS Capital Corp)
> VSR Financial Services Inc. (Acquired by RCS Capital Corp in 2015; Cetera Financial Group since)
The InvestmentNews report notes that this list does not include all firms which sold UDF, and that most clients who purchased the UDF REITs were retirees, some of whom concentrated a significant portion of their net worth (in some cases, up to half of a client's net worth) in UDF products.
If you have invested with a broker or financial adviser or with any of the above or other firms in the United Development Funding (UDF) REIT, or any UDF prodcuts, and such advice or investment activity in the absence of adequate due diligence has proven harmful to your interests through unsuitable recommendations or overconcentration of your assets, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.