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Red Flags at UDF IV

Timeline of Events Under Current Trustees
Philip Marshall, J. Heath Malone, and Steven Finkle join the board.
August 2008These three trustees presided over years of mismanagement and criminal activity, and have not stood for reelection since 2015.
The FBI raids UDF IV offices.
February 2016The board takes no action.
Nasdaq delists UDF IV shares due to not filing required reports. Shareholders lose important access to liquidity.
October 2016The board takes no action.
SEC settles enforcement action against UDF IV and several executives, ordering certain executives to pay over $8.2 million in disgorgement, prejudgment interest, and civil penalties.
July 2018The trustees authorize the use of YOUR money to pay $7.2 million of the disgorgement and prejudgment interest that was to be paid by the individuals on the management team (Obert, Wissink, Etter, and Greenlaw).
Lawrence Jones joins the board.
August 2019As a trustee, he oversaw the criminal convictions of former management and replaced Hollis Greenlaw as board chair when Mr. Greenlaw was convicted, despite never having been elected by shareholders.
The board amends bylaws to change election policies, adopting a staggered board, enabling trustees to avoid standing for election.
July 2020The board's actions deny shareholders critical voting rights.
SEC revokes the registration of all classes of registered securities of UDF IV for violations of their reporting obligations that "are serious, recurrent, and show a high degree of culpability."
August 2020The board take no action.
A federal jury convicts Hollis Greenlaw and three other UDF IV executives on multiple counts of fraud. FBI Special Agent in Charge: “These executives conspired to commit multiple fraud schemes in order to mislead investors and the SEC, with multi-million dollar losses.”
January 2022The board take no action.
The four convicted UDF IV executives are sentenced to a combined 20 years in federal prison.
May 2022The board take no action.
The Fifth Circuit Court of Appeals upholds the criminal convictions of the former UDF IV executives, citing an “avalanche of evidence.”
August 2023The board take no action.
U.S. Supreme Court denies review of UDF IV case, upholding the appellate court ruling.
May 2024The board take no action.

Red Flags: Current Board's Track Record

Including presiding over years of fraud and significant loss of value and liquidity

The current Trustees have failed shareholders for years.

Learn more about why wholesale change is needed on the UDF IV Board.
Learn More

Red Flags: UDF IV's Financials

Including skyrocketing impaired loans, questionable loan extensions, unhealthy loan concentration to one borrower, and asset erosion from G&A expenses

The latest financials reveal troubling trends at UDF IV.

Learn more about why urgent action is needed to protect shareholders value
Learn More
Impact of Board Actions

Actions Speak Louder Than Words

Review how the Board’s actions have impacted shareholders.

BOARD ACTION
BENEFITS
HARMS
Allowed UDF IV to go eight years without an annual meeting
  • Board
  • Advisor
  • Current Management
  • Former (Convicted) Executives
  • Shareholders
Changed the Company's bylaws to avoid standing for reelection
  • Board
  • Advisor
  • Current Management
  • Former (Convicted) Executives
  • Shareholders
Allowed UDF IV to go eight years without filing routine financials
  • Board
  • Advisor
  • Current Management
  • Former (Convicted) Executives
  • Shareholders
Actively fought efforts by NexPoint to enforce basic shareholder rights
  • Board
  • Advisor
  • Current Management
  • Former (Convicted) Executives
  • Shareholders

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