wasn’t one of Bass’s claims that UDF was loaning money on undeveloped property? The SEC mentioned that UDF’s disclosures on that were not correct.
I wouldn’t call it a complete exoneration. Paragraph 27 (I think) of the complaint was pretty damning. Calculating how much cash you need to pay UDF III’s dividend and then transferring that amount of money from UDF IV is pretty much the definition of a ponzi scheme. The only saving grace is that the loans transferred to zUDF IV (presumably) turned out to be good. If there was another downturn in real estate, things could have gotten really ugly.
There’s also the part about UDF hiding the Buffington projection from the auditors and giving them a made-up projection that was pure BS. That’s also concerning, especially when the loan ended up having to be written off.
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