GRAPEVINE, Texas, May 17, 2016 (GLOBE NEWSWIRE) -- An independent in-depth investigation of United Development Funding IV (“UDF IV” or the “Trust”) (NASDAQ:UDF) conducted by nationally recognized experts is now substantially complete. The Trust’s Audit Committee commissioned the independent investigation in December 2015 by the law firm Thompson & Knight LLP with the assistance of independent forensic accountants from a global accounting firm.
The UDF IV Audit Committee is comprised of three independent directors. More information can be found at http://investors.udfiv.com/committeechart.aspx?iid=4213398.
The independent investigation team performed a rigorous and exhaustive review of allegations made by Hayman Capital Management, L.P. and others. The Audit Committee provided the independent investigation team with full and unrestricted access to documents, records, communications and personnel and asked it to pursue every path that the facts warranted.
During the course of the independent investigation, the investigation team searched over 1.7 million e-mails and reviewed thousands of documents. The investigation team performed an in-depth review of the allegations regarding the Trust’s business and conducted extensive interviews with key management of the Trust, its advisor and its asset manager. The team thoroughly analyzed the Trust’s legal and financial reporting documents and records.
The independent investigation team found:
- No evidence of fraud or misconduct on the part of the Trust, its management, or its advisor.
- No evidence to substantiate allegations levied by Hayman Capital Management, L.P. of the operation of a Ponzi scheme. The business model was reviewed in great detail. The classic Ponzi scheme elements, as described by the Securities and Exchange Commission (“SEC”) and relevant case law, are not present.
- No evidence of deception, no evidence that auditors were misled, and no evidence that efforts were made to defraud investors.
- Nothing that indicated any deficiency in the integrity of the management team of the Trust, its advisor and its asset manager.
The investigation did identify areas to be considered for remedial action.
About United Development Funding IV
United Development Funding IV is a Maryland real estate investment trust listed on The NASDAQ Global Select Market. UDF IV was formed primarily to generate current interest income by investing in secured loans and producing profits from investments in residential real estate. Additional information about UDF IV can be found on its website at www.udfiv.com. UDF IV may disseminate important information regarding its operations, including financial information, through social media platforms such as Twitter, Facebook and LinkedIn.
Source:United Development Funding IV