Shares in Grapevine-based United Development Funding IV fell Thursday before being halted following a raid by FBI agents at the real estate investment trust’s offices.
According to a report by Bloomberg, the Federal Bureau of Investigation received court authorization for the search. NBC 5 filmed FBI agents leaving the business with boxes and computer equipment.
Dallas hedge fund manager J. Kyle Bass, the founder of Hayman Capital Management, launched a website, udfexposed.com, earlier this month that accuses the company of operating a “Ponzi-like” real estate scheme.
Bass’s company has taken a short position in United Development, which trades on the NASDAQ under the UDF symbol. The company has denied the allegations on the website.