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According to the Justice Department—and now, a federal jury—the people running a Texas lender, United Development Funding, went to great pains to mislead investors and the Securities and Exchange Commission about the success of tis funds. And it worked, because when UDF started complaining that hedge fund manager Kyle Bass was spreading false and misleading information about it, the SEC rushed in to take a look.

Of course, the SEC didn’t find anything, which is probably because the things that Bass said—notably, that UDF was a Ponzi schemerang true, at least to the aforementioned jury.

The federal jury convicted UDF Chief Executive Hollis Morrison Greenlaw and three other executives of 10 counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud…. The U.S. Department of Justice alleged that when developers failed to repay money they borrowed from one UDF fund, the executives transferred money out of another fund to pay distributions to the original fund’s investors without disclosing the transfers to the SEC and investors. The defendants face up to 25 years each in federal prison.

Convictions at Real-Estate Firm Are Win for Investor Kyle Bass [WSJ]

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By SteeleatHaymanCapitalManagementLP (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Kyle Bass Barred From Making Stuff Up About Lawyers For REIT He Accuses Of Making Stuff Up

Is it a good idea to piss off the judge presiding over your case this much? It seems like it might not be a good idea.

By SteeleatHaymanCapitalManagementLP (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Frequently-Sued Texas REIT Sues Kyle Bass

There are enough bad things to say about United Development Funding available without making others up, according to United Development Funding.

By SteeleatHaymanCapitalManagementLP (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Did Kyle Bass Go A Little Too Far In Trashing Fraudulent REIT?

I mean, the SEC is grateful for his help, but did he have to use the words “Ponzi scheme”?

car dealer

Maybe It Wasn’t Such A Great Idea To Fire A Guy Who Knew About The Ponzi Payments You Were (Allegedly) Making

Because in addition to “unemployed,” he can also now call himself “whistleblower.”

By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Older Brother Sells Out Younger Brother In Alleged Crypto Hedge Fund Fraud, But Notes That Real Villain Is SEC

If they’d just unfreeze those assets, his little bro would quickly get them back to his alleged victims, he’s pretty sure.


Hotlanta A Hotbed Of Hedge Fund, Private Equity Fraud

Allegedly. What I can tell you from on-the-ground reporting is that it is also very, very hot in a literal sense.