Defendant Name: United Development Funding IV

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 91018710

Initial Case Details

Legal Case Name SEC v. United Development Funding III, LP, United Development Funding IV, Hollis M. Greenlaw, Benjamin L. Wissink, Theodore F. Etter, Cara D. Obert, and David A. Hanson
First Document Date 03-Jul-2018
Initial Filing Format Civil Proceeding
Case Number 18-cv-01735
Allegation Type Issuer Reporting and Disclosure
Federal District Court Texas, Northern District of Texas

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Rule 12b-20 of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Rule 12b-20 of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Rule 12b-20 of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Rule 12b-20 of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Rule 12b-20 of the Exchange Act.
Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(a) of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(a) of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(a) of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(a) of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(a) of the Exchange Act.
Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-1 of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-1 of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-1 of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-1 of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-1 of the Exchange Act.
Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-13 of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-13 of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-13 of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-13 of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Rule 13a-13 of the Exchange Act.
Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(A) of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(A) of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(A) of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(A) of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(A) of the Exchange Act.
Hollis M. Greenlaw is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(B) of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(B) of the Exchange Act.
Theodore F. Etter is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(B) of the Exchange Act.
Cara D. Obert is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(B) of the Exchange Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Sec 13(b)(2)(B) of the Exchange Act.
Benjamin L. Wissink is alleged to have aided and abetted United Development Funding IV's violation of Sec 17(a)(2) of the Securities Act.
David A. Hanson is alleged to have aided and abetted United Development Funding IV's violation of Sec 17(a)(2) of the Securities Act.

Resolutions

First Resolution Date 03-Jul-2018

Related Documents:

comp24185 03-Jul-2018 Complaint
Complaint
On July 3, 2018, the SEC filed a complaint against United Development Funding IV, alleging that "The United Development Funding family of investment funds ("UDF") deploys investor capital towards the financing of homebuilders and land developers through private and publicly-traded investment funds. From at least January 2011 through December 2015 (the "Relevant Period"), UDF used money from a newer fund to pay distributions to investors in an older fund, without adequately disclosing the use of funds and the nature and status of loans made to developers."
LR-24185 03-Jul-2018 Press Release--Civil Action
SEC Charges Real Estate Investment Funds and Executives for Misleading Investors
On July 3, 2018, the SEC issued a litigation release regarding its charges against United Development Funding IV, stating: "According to the SEC's complaint, Texas-based United Development Funding (UDF) is a family of private and publicly-traded investment funds that deploys investor capital as loans to homebuilders and land-developers. UDF allegedly solicited investors by advertising annualized returns of up to 9.75 percent as well as regular distributions. According to the complaint, for almost five years, UDF did not tell investors that it lacked the monthly cashflow at times to cover investor distributions in one of its older funds, UDF III. Instead, to pay these distributions, the newer UDF IV fund loaned money to developers who had also borrowed money from UDF III. Rather than using those funds for development projects that were underwritten by UDF IV, UDF directed the developers to use the loaned money to pay down their older loans from UDF III."
court_doc13_18-cv-01735 31-Jul-2018 Court Docket Document
Final Judgment as to Defendants United Development Funding III, LP and United Development Funding IV
The Court stated that: "The court issues this Final Judgment pursuant to its Order, filed earlier today, and the parties' settlement agreement, in favor of the Securities and Exchange Commission and against Defendants United Development Funding III, LP ("UDF III") and United Development Funding IV ("UDF IV") . . ."

Other Defendants in Action:

United Development Funding III, LP
Hollis M. Greenlaw
Benjamin L. Wissink
Theodore F. Etter
Cara D. Obert
David A. Hanson