UDF IV missed its Tuesday (October 17, 2016) deadline to file its financial statements to avoid Nasdaq de-listing, and Nasdaq notified UDF IV that it will de-list UDF IV's shares. In a press release yesterday, October 18, 2016, UDF IV gave no specifics on when it plans to release its updated financial statements. In addition, UDF IV notified investors that the SEC provided a Wells Notice to the REIT and certain individuals associated with the REIT, where the U.S. Securities and Exchange Commission's ("SEC") Division of Enforcement made a preliminary determination to recommend that the SEC file an enforcement action alleging violations of certain provision of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The SEC's allegations were not released. None of this news comes as a big surprise. It is an understatement to say this is a serious situation.