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UDF IV is now valued at $0. Yes, zero. The month end statements from brokerage firms now show a zero for UDF IV shares. Why? Because brokerage firms must accurately value stocks on monthly statements. UDF IV cannot be bought or sold, so statements now have to reflect no value.

To bring you up to date on this latest Ponzi scheme: In December, Kyle Bass, one of the major winners as a “Big Short” on the housing market, starting shorting UDF IV. He later explained his short position: he thought that this real estate investment trust was a Ponzi scheme, a fraud, and that the money raised from UDF IV investors was being used to prop up earlier United Development REITs. When the market absorbed this information (from a credible trader who had made a lot of money shorting housing stocks in 2007 and 2008), UDF IV began to plummet. 

In February 2016, the FBI raided UDF’s offices and agents carried out boxes of files and computers. Again the market price for UDF IV fell.

Then, NASDAQ, where UDF IV shares traded, announced that it was suspending trading. No one can buy or sell UDF IV. Investors who were told UDF would provide income have “dead money.” VSR, Berthel Fisher, Sunset, and

other brokerage firms have recommended UDF to investors without doing their due diligence. They represented UDF IV would provide growth and income. If you have just learned your UDF IV shares have no value and your broker misled you to think this was a safe investment, you can recover your loss.

Groups of investors sold UDF IV by VSR, Berthel Fisher, Sunset, Cetera, and other firms are being formed. To join, please contact us by calling me at (913) 485-5014 or by emailing me at

United Development Funding IV L.P. Update

Groups of investors who bought UDF IV shares from VSR, Berthel Fisher, Sun America and other brokerage firms are being gathered together by Diane Nygaard in order to pursue FINRA arbitrations against the brokerage firms. Before recommending any security, a brokerage firm is required to do “due diligence”, researching whether or not a stock is a legitimate and reasonable investment for its customers. Unfortunately, the brokerage firms, including VSR, Berthel Fisher, Securities America and other brokerage firms sold UDF IV to their customers simply because of the relationships they had with UDF IV, rather than based on their research. Kyle Bass, one of the hedge fund managers featured in The Big Short, began shorting UDF IV in December, claiming that it was a Ponzi scheme, using later investors’ money to pay returns to earlier investors. The company, of course, vehemently denied this, but NASDAQ has called a halt to trading in the stock while it investigates. Insiders are “lawyering up.” If it is a Ponzi scheme, of course, it will all tumble like a house of cards and all investors are not likely to be reimbursed. That is why I am, instead, focusing on representing groups of investors in FINRA arbitrations against the brokerage firms who recommended UDF IV to its customers for violating their duties toward them. Please click on the link at the top of this page for more information on this topic.