Grapevine lender UDF's execs pay more than $8 million after SEC sues for misleading investors
More than two years after a Grapevine residential lender came under federal scrutiny, United Development Funding settled a case with the Securities and Exchange Commission over improper use of investor funds.
The investment firm — which financed more than $1 billion in residential community development in Dallas-Fort Worth and across the state — is accused of using money from new investors to fund older ventures.
The company is also charged with misleading its investors about how their contributions were spent.
"UDF solicited investments by allegedly touting consistent investment returns," Shamoil T. Shipchandler, director of the SEC's Fort Worth regional office, said in a statement. "But instead, as we allege, the family of funds and its executives concealed the economic reality of UDF's business operations and masked the fact that payments to investors in an earlier fund came from a newer fund."
Read more: https://www.dallasnews.com/business/real-estate/2018/07/03/grapevine-lender-udfs-execs-pay-8-million-after-sec-sues-misleading-investors