United Development Funding IV—Ponzi Scheme Allegations Report

ponzi scheme attorneysUnited Development Funding IV, a Texas REIT, Has Allegedly Operated for Years as a Ponzi Scheme, According to Blogger

United Development Funding IV, a Texas REIT, has allegedly operated for years as a Ponzi scheme, according to a Harvest Exchange post currently under review by attorneys Joe Peiffer and Alan Rosca.

UDF IV was a nontraded REIT that listed on the Nasdaq in June 2014, and, following the post, the REIT’s share price dropped to $10.10 from $17.53, a decrease of 42.4%, and recently further fell further to $8.55, according to NASDAQ reports.

The Peiffer Rosca Wolf securities lawyers are currently investigating United Developments Funding IV’s alleged Ponzi scheme.

Nicholas Schorsch Served as Marketing and Wholesaling Broker-Dealer for UDF IV, UDF Claims that Harvest Exchange Post was Work of Hedge Fund Looking to Short the Company

UDF IV, which formerly employed Nicholas Schorsch as their marketing and wholesaling broker-dealer, allegedly used new capital used to fund distributions to existing investors and subsequent UDF companies, thus giving major liquidity to earlier vintage UDF companies, allowing them to pay earlier investors, according to a Harvest Exchange post currently under review by attorneys Joe Peiffer and Alan Rosca.

UDF then shot back, and pointed the finger for the post on a hedge fund looking to profit by taking a short position in the company, according to a UDF press release. In the same release, UDF IV claims that it has been cooperating in a Securities and Exchange Commission (SEC) “fact-finding investigation” since April 2014, or two months before it became a listed company.

UDF IV‘s statement concludes that “The SEC has informed the companies that this investigation is not an indication that any violations of law have occurred or that the SEC has any negative opinion of any person, entity or security.”

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of Ponzi schemes and are currently investigating UDF IV’s alleged Ponzi scheme. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

As of the date of this blog, there has not been any allegation by regulators, nor any finding by a court of law, of any misconduct by UDF IV. Everyone should be presumed innocent until found guilty in a court of law.

Investors who believe they lost money as a result of UDF IV’s alleged Ponzi scheme may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1123 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.