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Red Flags at UDF IV

Know the facts before you vote:

Review the Red Flags

NexPoint sent letters to shareholders alerting them of the many red flags in the current Board’s track record and in the Company’s latest financials. Shareholders should review this information prior to casting their votes for Trustees at the upcoming Annual Meeting.

Current Trustees' Track Record

There are significant red flags in the current Trustees’ track record on the UDF IV Board, including presiding over years of fraud committed by former management against shareholders and significant loss of value.

Company Financials

UDF IV’s financial statements reveal questionable conduct by the Board of Trustees, leading to significant value erosion.  Red flags include skyrocketing impaired loans, questionable loan extensions, unhealthy loan concentration to one borrower, and asset erosion from G&A expenses. 

Before casting your vote, consider what these trustees have done for you:

  • For seven years, the Company failed to file quarterly and annual reports, resulting in the stock getting delisted by Nasdaq and deregistered by the SEC.
  • For eight years, the Company failed to hold a shareholders’ meeting, only doing so after NexPoint challenged them in court.
  • On the board’s watch, the management team engaged in wire and securities fraud for YEARS—defrauding YOU, their shareholders.
  • The board then authorized the use of millions of dollars of YOUR money to defend the management team at their criminal trial.
  • The board authorized the use of YOUR money to pay the management team’s $7.2 million SEC disgorgement.
  • Even after the management team was sentenced to prison, the board maintained the status quo, allowing the advisor to continue to collect millions of dollars of YOUR money in advisory fees—while making no effort through offset or otherwise to recover advanced fees from the advisor and its management team.
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