Texas REIT Offices Raided By FBI
The FBI raided the office of a Texas REIT, United Development Funding IV, this week. The firm saw its stock price drop 81% in the past two months after a hedge fund alleged it was operating for years like a Ponzi scheme. “The FBI is lawfully present and conducting law enforcement activity” at the UDF offices, said FBI spokeswoman Allison Mahan. The FBI's presence at UDF headquarters further diminished the company's share price, which fell almost 55% during trading on Thursday to $3.20 per share after it was reported locally that the FBI agents were carrying boxes out of the company's headquarters. In December, UDF shares were trading at $17.20. UDF IV had total assets of $684 million, the vast majority of which, $513.2 million, were notes receivable, according to its quarterly report from November. Notes receivable for related parties was $69.6 million, according to the report. UDF IV was knocked on its heels in December when an investor website [...]