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FBI Agents Raid A Texas Housing Financial Firm Accused Of Fraud

A housing development firm in Grapevine, Texas, was visited by FBI agents Thursday after being accused of operating as a Ponzi scheme.
Posted at 5:57 PM, Feb 18, 2016

The FBI may be investigating a Texas company accused of operating as a Ponzi scheme.

FBI agents raided United Development Funding in Grapevine on Thursday. KXAS reports the housing financial firm has reportedly “financed more than $1 billion in residential development across Texas.”

The firm came under fire after a Texas hedge fund manager launched a website claiming the company uses “cash from new investors to repay existing investors” and is “misleading investors.” 

In response, United Development Funding posted a message from the CEO on its own website that calls the accusations "misleading" and "false."

The company has said it has been cooperating in a "fact-finding investigation" with the U.S. Securities and Exchange Commission since April 2014.