Four managers of a Dallas-area real estate investment trust were
Prosecutors claim the four conspired to conceal the true performance of the fund’s business and its financial condition to encourage investment and enrich themselves. Greenlaw and other UDF managers sought to defraud investors and obtain money from banks by failing to disclose that shareholder funds were being used to repay developer loans and issue distributions to earlier investors, according to the indictment.
In a statement, Greenlaw’s lawyer Paul Pelletier called the charges baseless and said his client and the other defendants would be vindicated. Greenlaw and the others are expected to appear in federal court in Fort Worth, Texas Tuesday afternoon.
The Securities and Exchange Commission sued Grapevine, Texas-based UDF over similar allegations in July 2018. UDF agreed to pay about $8.2 million to resolve the claims without admitting or denying wrongdoing.
Greenlaw and UDF are separately involved in litigation against
The criminal case is U.S. v. Greenlaw, 21-cr-289, U.S. District Court, Northern District of Texas (Fort Worth). The SEC case was Securities and Exchange Commission v. United Development Funding III LP, 18-cv-01735, U.S. District Court, Northern District of Texas (Dallas).
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