Replies to post #555 on United Development Funding IV fka UDFI

[Jh5142]

If the allegations in the Megatel lawsuit are correct, it provides info that was new to me.

Allegedly, Moyaodi was receiving a $2000 per house fee from Megatel in exchange for introducing Megatel to UDF. Megatel paid him $1.6 million in total under this arrangement. On the surface, a company can pay someone a consulting or advisory fee if they want to. But this seems unusual,

Megatel claims that UDF provided significant funding to their homebuilding operating in exchange for Megatel agreeing to pay above market prices for lots from both Centurian and Buffington. Megatel claims that UDF knew their loans were market too high and needed someone to pay above market lot prices in several deals. That’s my interpretation.

They are just allegations in a lawsuit that are unproven at this point.