Replies to post #428 on United Development Funding IV fka UDFI

[Phaedrus77]

If there was an issue with the prior work, they would need to issue an 8-k stating that they are restating prior financials and/or those financials shouldn’t be relied on.

According to IR, the ‘15 financials were almost done when the SEC issued the Wells notices and all work (supposedly) stopped.

That being said, they’ll probably announce tonight that they have to restate prior financials. I’ve learned to always expect the worst with these clowns. ;)

[Enterprising Investor]

The SEC showed Whitney Penn a pro forma cash flow spreadsheet prepared by an Austin UDF III borrower and a revised version of the same spreadsheet provided by UDF (see 9).

The SEC told Whitney Penn that they were misled about the spreadsheet, but prohibited Whitney Penn from asking UDF about it.

Can you say "smoking gun"?

Now, we all know why Whitney Penn notified UDF that they would not stand for reappointment. Only a select few knew the real reason.