The Fair Fund was ordered by a federal judge in the 2018 SEC settlement to have been funded with the $7.2 million of disgorgement proceeds that Hollis, Cara, Ben and Todd were to pay pursuant to the SEC settlement in July 2018. However, UDF IV actually paid the $7.2 million, as testimony in the retention hearing after the criminal conviction showed. Therefore, those of you who received a Fair Fund payment just received an additional return of capital that has further depleted the net assets of UDF IV. Those of us who bought shares after the holding deadline have just seen the consummation of another egregious act of shareholder abuse - corporate funds being unlawfully used to fund a settlement with people who sold shares to us and left us holding the bag!
