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Press Release

United Development Funding IV (UDF IV) Advisor and Affiliates Continue to Harm Shareholders, According to NexPoint

Hollis M. Greenlaw, Theodore F. Etter, Benjamin L. Wissink, and Cara D. Obert improperly used shareholder assets to pay more than $65 million in legal fees and indemnification expenses

NexPoint files motion to enjoin defendants from requesting and/or otherwise using UDF IV’s assets to pay legal fees incurred in appeal of criminal convictions or any other matter to which they are a party

Dallas, TX – September 15, 2022 – NexPoint Advisors, L.P., (together with its affiliates “NexPoint”), a Dallas-based alternative investment firm, today announced that it has filed a motion for preliminary injunction in Dallas State District Court related to United Development Funding IV (“UDF IV”), a real estate investment trust in which NexPoint is a significant shareholder. NexPoint seeks the injunction to prevent defendants from continuing to improperly use UDF IV’s assets to pay legal fees incurred in the appeal of their criminal convictions.

The motion names the following as defendants: UMTH General Services, L.P. (the “Advisor”), UMTH Land Development L.P. (“UMTH Land”), UMT Holdings, L.P. (“UMTH Holdings”), Hollis M. Greenlaw, Theodore F. Etter, Benjamin L. Wissink, and Cara D. Obert (collectively “Defendants”). UDF IV is managed and controlled by Defendants. The individual Defendants have at all times controlled and exclusively managed the entity Defendants.

In January 2022, Mr. Greenlaw, Ms. Obert, and Mr. Wissink were convicted on ten counts of securities, wire, and bank fraud in conjunction with operating UDF IV (and other UDF funds) as a Ponzi scheme. They are currently serving five- to seven-year prison sentences. The Defendants are using their status within the Advisor to cause UDF IV to pay their significant legal fees in connection with the criminal case and possibly other litigation. To date, Defendants improperly used shareholder assets in UDF IV to pay what is believed to be more than $65 million in legal fees and indemnification expenses. NexPoint believes this practice continues to this day as the three felons are appealing their convictions but using UDF IV to pay for their lawyers.

“The UDF ‘web of companies’ has been set up in a purposefully complex and obtuse manner in order to maximize control in the hands of a few individuals (the individual Defendants) while hiding their operations,” said D.C. Sauter, General Counsel, NexPoint. “The Defendants have engaged in egregious acts of misconduct and despite their convictions continually seek to benefit themselves at the expense of shareholders, with the active consent of UDF IV independent trustees. On behalf of fellow shareholders, we believe the time has come to put an end to this outrageous behavior.”

UDF IV’s activities have in the past, and continue to be, controlled, managed, and conducted by UMTH General, as its advisor, and by the Advisor’s officers and employees, including the individual Defendants. The Advisory Agreement clearly provides that UMTH General is in a fiduciary relationship with the shareholders of UDF IV. The Agreement also prohibits indemnification for allegations of securities law violations except in limited circumstances not applicable in this case. NexPoint’s motion seeks to put a stop to Defendants requesting and using indemnification from UDF IV to cover significant legal fees and expenses in connection with the criminal case and possibly other litigation.

The full motion can be found here and is part of NexPoint’s ongoing efforts to hold accountable those individuals and entities that have perpetuated the massive multi-year deception and fraud at the expense of UDF IV shareholders.

About NexPoint Advisors, L.P.

NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit



Lucy Bannon
Chief Communications Officer

Cristina Martinez
Prosek Partners for NexPoint

Jackie Graham
Director, Investor Relations and Capital Markets