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.