Eustace Mita Resigns from UDF V Board
United Development Funding Income Fund V, a publicly registered non-traded real estate investment trust co-sponsored by UDF Holdings and American Realty Capital, announced that Eustace Mita has voluntarily resigned as a member of the board of trustees.
His resignation is due to personal reasons and not a result of any disagreement with the company, according to a filing with the Securities and Exchange Commission.Due to his resignation, the board now has three members, two of whom are independent trustees.
UDF is the sponsor of several non-traded real estate investment trusts, as well as a traded REIT, United Development Funding IV (NASDAQ: UDF).
As reported by The DI Wire, the FBI raided the Grapevine, Texas office of United Development Funding and seized multiple boxes last month.
The raid followed public accusations by Kyle Bass, hedge fund manager and founder of Hayman Capital Management, who launched the website UDFexposed.com and accused the company’s public REIT, UDF IV, of operating a “Ponzi-like real estate scheme,” by using new investor money to pay existing investors.
UDF IV vehemently denied the rumors, claiming the website contains “multiple false and misleading statements about our company and management team.”
United Development Funding Income Fund V is a non-traded REIT that provides financing for the acquisition and development of single family residential lots. According to the January Stanger Market Pulse, the company has raised $57.6 million since it went effective in July 2014.
