By Steve Brown of The Dallas Morning News
(Feb. 22) – Embattled residential finance and investment firm United Development Funding says its top officers have been subpoenaed to provide a federal grand jury with documents related to the operation of the company.
Last week agents with the Federal Bureau of Investigations searched the company’s Grapevine offices and removed documents related to the company’s operation.
Since late last year, United Development Funding has been battling allegations by Dallas hedge fund investor Kyle Bass that the company has made improper real estate loans, has mishandled funds and defrauded its investors.
Bass has called labeled the firm a “billion dollar house of cards” and a “Ponzi-like real estate scheme.”
For a longer version of this article, please check out Steve Brown’s article at www.bizbeatblog.dallasnews.com.