Fifth Circuit Upholds Conviction of UDF Executives in Securities Fraud Case
From the desk of Jim Eccleston at Eccleston Law
In a recent ruling, the Fifth Circuit upheld the conviction of United Development Funding (UDF) executives on multiple charges of wire and securities fraud linked to their operation of a Ponzi scheme.
The court affirmed that UDF had engaged in fraudulent activities, deceiving over 30,000 investors nationwide and amassing over $100 million through a ten-year-long Ponzi scheme. This scheme revolved around providing loans to housing developers in Texas. In February 2023, the Fifth Circuit declined to release the executives from federal prison during their appeal against their convictions, handed down in May 2022.
DI Wire reported that the four UDF executives had received combined sentences of 20 years in January 2022, as reported by The DI Wire. The CEO, Hollis Greenlaw, was sentenced to seven years, while Partnership President Benjamin Wissink and CFO Cara Obert received five-year sentences each. Asset Management Director Jeffrey Jester was sentenced to three years. Additionally, Greenlaw, Wissink, and Obert were fined $50,000 each.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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