The White Law Group continues to investigate the liability that brokerage firms may have for recommending United Development Funding III to clients. The firm has handled a number of claims involving UDF Funds over the years.
United Development Funding III, according to SEC filings, was formed primarily to generate current interest income by investing in mortgage loans. The fund was registered with the SEC in 2005.
Unfortunately, some investors who purchased United Development Funding III may not have been aware of the risk and lack of liquidity of the fund. The prospectus warns that no public market exists to sell limited partnership units and that investors should purchase units only if they can offer complete loss of their investment.
Secondary Market Listing
United Development Funding III is a limited partnership. These types of investments are intended for sophisticated and institutional investors. The level of risk is generally too high for conservative and moderate risk investors. They also lack liquidity because they are not sold on any public exchange, such as the NYSE or NASDAQ.
According to Central Trade and Transfer, a secondary market for private placements, shares of United Development Funding III are currently listed for just $2.50 per share. This appears to be a significant loss for investors, as the shares were valued at $20.00/share in 2014.
Did you lose money investing in United Development Funding III? If so the securities attorneys at The White Law Group may be able to help you. To discuss your litigation options, please call (888) 637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
The firm represents investors in FINRA arbitration claims throughout the country. For more information please visit the website at www.whitesecuritieslaw.com.