COLUMBUS, Ohio, Feb. 26, 2016 /PRNewswire/ -- The investment fraud lawyers at Meyer Wilson have been contacted by individual investors who were sold UDF real estate investment trusts (REITs) by their brokers, prompting the firm to investigate allegations highlighting potential problems with UDF's concentrated lending practices.
The FBI raided UDF offices last Thursday after allegations surfaced that UDF had been using investor money to pay existing investors. Since December, UDF's stock price has dropped 81%. Immediately after last week's raid, UDF's price fell to $3.20 per share. In December, UDF shares were trading at $17.20.
According to the founding attorney at Meyer Wilson, David Meyer, "Meyer Wilson is investigating a number of brokerage firms' sales practices involving recommendations for customers to invest in United Development Funding programs."
Brokerage firms are required to train their brokers to understand the investment products that they are selling, and ensure that those products are suitable for their clients before recommending them. They must conduct extensive due diligence on any investment before they promote and sell it to their customers. For these reasons, brokerage firms could be held responsible if their registered brokers sold UDF REITs to clients.
If you invested money in a United Development Funding investment program through the recommendation of a brokerage firm, you may be able to recover your losses against the brokerage firm that sold you the investments. Contact Meyer Wilson for a free review of your individual recovery options. For more information on United Development Funding, visit www.investorclaims.com/United-Development-Funding or call (888) 390-6491.
SOURCE Meyer Wilson