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Written by 2:46 pm Blog, Current Investigations

Update: United Development Funding IV

United Development Funding IV

Investment Losses in United Development Funding IV

Have you suffered investment losses in United Development Funding IV? If so, the securities attorneys of The White Law Group may be able to help you.

According to their website, United Development Funding IV is a public Maryland real estate investment trust formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate.

The trouble with non traded REITS, like United Development Funding IV, is that they are complex and inherently risky products.

On July 26, 2016 United Development Funding IV announced that a NASDAQ Hearings Panel has determined to continue the listing of the Trust’s common shares on The NASDAQ Stock Market.  The Trust’s continued listing is subject to the condition that, on or before September 12, 2016, the Trust evidence regulatory compliance by filing all necessary periodic reports with the Securities and Exchange Commission.  The Trust must also be able to demonstrate that it satisfies all other quantitative and qualitative requirements for continued listing on NASDAQ.

Trading in UDF IV’s securities on NASDAQ has been halted since February 18, 2016, and the Trust expects that the trading halt will continue at least until the Trust has become fully current in its periodic filing obligations with the SEC.  No assurance can be given regarding the resumption of regular trading of the Trust’s securities on any market.

The Risks of REITs

The high commissions associated with non-traded REITs, sometimes as high as 15%, may have provided enough incentive for some brokerage firms to overlook FINRA suitability rules when making investment recommendations to clients.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that some investors purchase non-traded REIT investments like UDF IV.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.

If you suffered losses investing in United Development Funding IV and would like a free consultation with a securities attorney, please call The White Law Group at  888-637-5510.

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

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

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