Replies to post #1188 on United Development Funding IV fka UDFI

[Phaedrus77]

I don’t think the SEC investigation & fine and the auditor resignation had much, if anything, to do with Bass.

The SEC investigation started long before Bass was in the picture. The auditor resignation seemingly came about due to the doctored spreadsheet that the SEC showed the auditors.

From there, UDF had a new auditor in place in June 2016. UDF directed them to stop work in Sept 2016 due to the Wells notices. That is all directly from Eisner Amper’s notes. So, it seems that UDF’s claim that Bass prevented an audit is bullshit.

I think Bass’s attack was illegal. I also think UDF’s response made things 100x worse. Instead of biting the bullet and getting an audit, writing down the Buffington loan, trying to get back to business, etc they decided to act like an innocent victim and blame Bass for everything.

That course of action has led to no audit and thus, no shareholder meeting for 6 years. Which means shareholders have had no opportunity to vote management out. Which means management has been able to continue to collect its lucrative management fees.

But I’m sure that UDF actually pursued that course because it was in the best interests of shareholders.