{"id":6378,"date":"2018-08-29T19:36:20","date_gmt":"2018-08-29T19:36:20","guid":{"rendered":"https:\/\/www.investorlawyers.com\/?p=6378"},"modified":"2018-08-29T19:36:20","modified_gmt":"2018-08-29T19:36:20","slug":"investors-in-udf-iv-reit-want-13-5m-ponzi-fraud-settlement","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/investors-in-udf-iv-reit-want-13-5m-ponzi-fraud-settlement\/","title":{"rendered":"Investors in UDF IV REIT Want Texas Federal Judge to Approve $13.5M Ponzi Fraud Settlement"},"content":{"rendered":"<p>\t\t\t\tInvestors who placed their funds in the Texas-based United Development Funding IV real estate investment trust are asking a federal judge to approve a $13.5M <a href=\"https:\/\/www.investorlawyers.com\/investor-claims\/\" target=\"_blank\" rel=\"noopener noreferrer\">REIT fraud settlement<\/a> they\u2019d reached with the company over the allegations that it had been run like a Ponzi-like scam and concealed this. The plaintiffs contend that UDV IV and its affiliates not only made false statements but also they did not disclose material facts involving business and operations.<\/p>\n<p>They brought their REIT fraud case against the UDF companies three years ago, accusing the defendants of using investors\u2019 funds from newer offering to pay investors who had gotten involved in earlier offerings. The investors, who want class certification, alleged that disclosures they were offered were misleading and lending practices lacked transparency.<\/p>\n<p>Both sides eventually arrived at the $13.5M settlement\u2014$10.5M in cash and another $3M once the REIT hits its $75M cash flow target in two years. This deal is separate from a settlement the plaintiffs reached with UDF accountants, as well as those that underwrote and sold the allegedly fraudulent offerings.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/investors-in-udf-iv-reit-want-13-5m-ponzi-fraud-settlement\/\"  title=\"Continue Reading Investors in UDF IV REIT Want Texas Federal Judge to Approve $13.5M Ponzi Fraud Settlement\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investors who placed their funds in the Texas-based United Development Funding IV real estate investment trust are asking a federal judge to approve a $13.5M REIT fraud settlement they\u2019d reached with the company over the allegations that it had been run like a Ponzi-like scam and concealed this. The plaintiffs contend that UDV IV and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3792,3759,3750,4110],"tags":[3131,3132],"class_list":["post-6378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ponzi-scams","category-reits","category-texas-securities-fraud","category-united-development-funding","tag-reit","tag-udf-iv"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>REIT Investors Want Ponzi Fraud Settlement &#8212; Investor Lawyers Blog<\/title>\n<meta name=\"description\" content=\"Investors who placed their funds in the Texas-based United Development Funding IV REIT are asking a federal judge to approve a $13.5M REIT fraud settlement.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/investors-in-udf-iv-reit-want-13-5m-ponzi-fraud-settlement\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"REIT Investors Want Ponzi Fraud Settlement &#8212; Investor Lawyers Blog\" \/>\n<meta name=\"twitter:description\" content=\"Investors who placed their funds in the Texas-based United Development Funding IV REIT are asking a federal judge to approve a $13.5M REIT fraud settlement.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2018\/04\/gavel-judge.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"REIT Investors Want Ponzi Fraud Settlement &#8212; Investor Lawyers Blog","description":"Investors who placed their funds in the Texas-based United Development Funding IV REIT are asking a federal judge to approve a $13.5M REIT fraud settlement.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/investors-in-udf-iv-reit-want-13-5m-ponzi-fraud-settlement\/","twitter_card":"summary_large_image","twitter_title":"REIT Investors Want Ponzi Fraud Settlement &#8212; 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