Author Topic: UDFI - United Development Funding IV  (Read 7559 times)

Máscara

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Re: UDFI - United Development Funding IV
« Reply #10 on: June 15, 2020, 11:52:45 AM »
The following snippet caught my attention:
Quote
The U.S. attorney’s office in Dallas is continuing a criminal investigation into UDF, according to people familiar with the matter.

Is this a new investigation?

Maybe this one:

https://udfexposed.com/assets/content/190647_-_Opinion_UDF_v._Megatel.pdf


writser

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Re: UDFI - United Development Funding IV
« Reply #11 on: June 15, 2020, 12:04:18 PM »
The following snippet caught my attention:
Quote
The U.S. attorney’s office in Dallas is continuing a criminal investigation into UDF, according to people familiar with the matter.

Is this a new investigation?

Maybe this one:

https://udfexposed.com/assets/content/190647_-_Opinion_UDF_v._Megatel.pdf

But that's not a criminal investigation, right?
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@thewritser

Máscara

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Re: UDFI - United Development Funding IV
« Reply #12 on: June 15, 2020, 12:18:35 PM »
Oops, sorry

Hielko

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Re: UDFI - United Development Funding IV
« Reply #13 on: June 15, 2020, 12:55:28 PM »
The following snippet caught my attention:
Quote
The U.S. attorney’s office in Dallas is continuing a criminal investigation into UDF, according to people familiar with the matter.

Is this a new investigation?

Surely it's a continuation of the same investigation that resulted in the February 2016 FBI raid? It has been well over four years, I think an argument can be made that, if charges were going to be brought, we already would have seen it.

The MiMedx situation is probably a more typical timeline: Justice Department opened investigation in 2018, and charges were brought in late 2019.
I'm not so familiar with how things work in the US, but is it common for investigations to be officially closed at some point (and if yes, when?).

Foreign Tuffett

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Re: UDFI - United Development Funding IV
« Reply #14 on: June 15, 2020, 01:10:16 PM »
The following snippet caught my attention:
Quote
The U.S. attorney’s office in Dallas is continuing a criminal investigation into UDF, according to people familiar with the matter.

Is this a new investigation?

Surely it's a continuation of the same investigation that resulted in the February 2016 FBI raid? It has been well over four years, I think an argument can be made that, if charges were going to be brought, we already would have seen it.

The MiMedx situation is probably a more typical timeline: Justice Department opened investigation in 2018, and charges were brought in late 2019.
I'm not so familiar with how things work in the US, but is it common for investigations to be officially closed at some point (and if yes, when?).

Great question.

The short answer is "I don't know."

The long answer is "What is the incentive for Justice Department to ever officially end an investigation?" By doing so it basically admits that it spent years of time and lots of taxpayers' the Fed's money on an effort that never resulted in any charges. It also means that it looks somewhat  stupid if an unexpected new development causes the case to have to be reopened.

I would think many cases remain "open" even if no real work is actually being done on them. Eventually the statute of limitations will kick in, making it impossible to bring charges.

Former Teldar Paper Vice President

Foreign Tuffett

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Re: UDFI - United Development Funding IV
« Reply #15 on: June 15, 2020, 01:23:46 PM »
Albeit a few years old, the below document was some good info:

https://www.instituteforlegalreform.com/uploads/sites/1/DeclinationsBooklet.pdf

"In many of today’s white collar criminal
investigations, whether conducted as to
corporations or individuals, the decision
to investigate will bring to bear “all the
force of the government itself,”
in a way that can also mightily affect investors
and other stakeholders. Criminal
investigations, whether conducted
internally by a corporation’s outside
counsel, or by government enforcement
agencies, or some combination thereof,
present significant costs in the form of
both legal fees as well as collateral costs,
such as a chilling effect on investment and
innovation, distracted management, and
harm to the reputations of the individuals
and businesses under investigation.

These costs are felt not only by the
corporation’s investors, but also by senior
management and employees suspected
of malfeasance who may face their
own unique personal toll in the face
of a criminal investigation. In many
cases, these individuals turn out to be
innocent actors standing at the fringes
of the suspected misconduct who, while
never ultimately prosecuted, also never
have the bell unrung as to whether they
were truly cleared or why DOJ declined
to pursue charges.
Individuals who are
never indicted or charged still incur
the often paralyzing costs and burden
of investigation and it can be difficult
to determine when the investigation
has come to an end
. According to DOJ
statistics, in 2009 it took a median of
453 days for United States Attorney’s
Offices to reach a declination decision.8
By contrast, the same DOJ data shows that it
takes less than a month for U.S. Attorneys
to reach a decision to file charges."
Former Teldar Paper Vice President

cm2

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Re: UDFI - United Development Funding IV
« Reply #16 on: June 16, 2020, 11:31:30 AM »
UDF could be a 10-bagger plus and it pays a dividend

Maple Fun

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Re: UDFI - United Development Funding IV
« Reply #17 on: June 16, 2020, 01:04:18 PM »
UDF could be a 10-bagger plus and it pays a dividend

Are you sure? They have not paid any this year

Hielko

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Re: UDFI - United Development Funding IV
« Reply #18 on: June 16, 2020, 01:38:26 PM »
They paid two small dividends last year. Who knows what will happen this year.

Foreign Tuffett

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Re: UDFI - United Development Funding IV
« Reply #19 on: June 16, 2020, 02:27:21 PM »
Two $0.065 dividends last year, one in August and one in December. At the current stock price that's a TTM yield north of 8%.

Of course, as was mentioned already, there is no visibility as regards future dividends.

Former Teldar Paper Vice President