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‘Ponzi-Scheme’ REIT Raided By The FBI, Shares Slashed In Half
February 19, 2016
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Just weeks after hedge fund prophet J. Kyle Bass revealed his shorting of United Development Funding, the “Ponzi-scheme” REIT (in his words), the REIT’s HQ was raided by the FBI, and its stock plummeted over 54%.
Bass—who made a fortune shorting subprime mortgages before the 2008 crisis—published a damning report on the company in December under the pseudonym "Investor For Truth," along with shorting UDF shares.
Bass revealed his identity this month on a website trashing the REIT, Business Insider reports. UDF denies Bass’ allegations (that it's a Ponzi scheme preying on mom-and-pop investors), saying his website contains “multiple false and misleading statements.” [BI]
