Jury convicts United Development executives of misleading real estate investors

Four top executives of a Grapevine real estate development lender were convicted Friday in what government prosecutors described as a multi-year scheme to mislead investors, banks and regulators. United Development Funding CEO Hollis Greenlaw, president Benjamin Wissink, chief financial officer Cara Delin Obert and asset management director Jeffrey Brandon Jester were found guilty by a jury in Fort Worth on 10 counts, including securities fraud, conspiracy to commit securities fraud and wire fraud affecting a financial institution.

The verdict followed five days of trial testimony and over 12 hours of deliberation. Each executive faces up to 25 years in federal prison, and they’re expected to appeal their convictions. “We will continue to vindicate the innocence of these fine people in court and on appeal,” Greenlaw’s attorney Paul Pelletier said. “We reject any notion that UDF’s business was conducted improperly in any way and will continue to fight to expose the truth.” Federal prosecutors said the convictions brought an end to a years-long examination of UDF’s investment funds. “UDF executives shuffled money from one fund to another without disclosing the commingling to investors or regulators,” said U.S. Attorney Chad Meacham in a statement. “After a long battle, justice has been done.”