NexPoint Files Complaint to Hold UDF IV Advisors and Affiliates Accountable
DALLAS, Aug. 18, 2022 /PRNewswire/ -- NexPoint Advisors, L.P., (together with its affiliates "NexPoint"), a Dallas-based alternative investment firm, today announced that it has filed a new complaint in Dallas District Court related to United Development Funding IV ("UDF IV"), a real estate investment trust in which NexPoint is a significant shareholder. The complaint names the following individuals and entities as defendants: UMTH General Services, L.P. (the "Advisor"), UMTH Land Development L.P. ("UMTH Land"), UMT Holdings, L.P. ("UMTH Holdings" and, collectively with the Advisor and UMTH Land, the "Entity Defendants"), Hollis M. Greenlaw, Todd F. Etter, Ben L. Wissink, and Cara D. Obert (the "Individual Defendants") (collectively "Defendants"). UDF IV is managed and controlled by the Entity Defendants. The Individual Defendants have at all times controlled and exclusively managed the Entity Defendants. All but one of the Individual Defendants were convicted on ten federal counts of securities fraud, wire fraud, and bank fraud for which they are serving five- to seven-year sentences.
Specifically, the complaint alleges that Defendants used shareholder money to pay their own personal obligations under a SEC settlement, lied about using shareholder money to satisfy the personal financial obligations of certain of the Defendants under the SEC settlement, improperly spent millions of dollars in shareholder money to fund their criminal defense, paid themselves lucrative management fees on overvalued assets, and tried to hide their actions by blocking audited financials of UDF.
The full complaint can be found here: Original Petition vs. UMTH General Services, L.P., UMTH Land Development L.P., UMT Holdings, L.P., Hollis M. Greenlaw, Todd F. Etter, Ben L. Wissink, and Cara D. Obert
The complaint is part of NexPoint's ongoing efforts to hold accountable those individuals and entities that have perpetuated the massive multi-year deception and fraud at the expense of UDF IV shareholders.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit www.nexpoint.com
Chief Communications Officer
Prosek Partners for NexPoint
Director, Investor Relations and Capital Markets
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SOURCE NexPoint Advisors, L.P.