NASDAQ has had to remind publicly-traded real estate trust, United Development Funding (“UDF”), of its obligation to file its Form 10-K for 2015, giving it just 60 days to do so. Based in Dallas, Texas, UDF is the target of an FBI investigation and has now failed to timely file its 2015 10-K. According to the Wall Street Journal, UDF’s largest fund is United Development Funding IV (“UDF IV”), which was originally a non-traded REIT but listed its shares in 2014. Unfortunately, as with many REITs, sales of the non-traded UDF IV REIT were focused on the dividend income to be earned and not on significant risk factors such as excessive costs, lack of liquidity and diversification, and conflicts of interest. Despite professing to have a portfolio that is diversified by submarket and loan types, 99% of UDF IV’s portfolio is made up of loans to Texas borrowers including private Texas-based developer,  Centurion American. Centurion American was also the recipient of the majority of the balance of UDF’s loans.  Having shared borrowers between and among UDF-affiliated investments could lead to adverse consequences and should have been fully disclosed to investors at the point of sale. Additionally, UDF is facing allegations from a Texas hedge fund manager that it used new investor money to repay investors in prior UDF-affiliated investments, which could make it part of a Ponzi scheme. Lambert Law Firm, LLC represents investors in the recovery of financial losses caused by investment fraud and misconduct.  If you invested in UDF IV and lost money, contact Marnie C. Lambert at 1-844-32FRAUD for a free consultation regarding your legal rights and options.