Texas REIT Managers Charged With Plot to Cheat Banks, Investors

Four managers of a Dallas-area real estate investment trust were charged by federal prosecutors with conspiring to defraud banks and improperly using investor money to plug cash shortfalls, according to an indictment filed in federal court in Texas.

Hollis Greenlaw, chief executive officer of United Development Funding, or UDF, and three other executives were charged with securities fraud and conspiracy to commit wire fraud affecting a financial institution. The alleged scheme ran from 2011 until the end of 2015, according to an indictment made public Monday.

Prosecutors claim the four conspired to conceal the true performance of the fund’s ...