(Click on Image to View Larger)

As part of our continuing effort to keep investors apprised as to the progress of the lawsuit, please note that we have added to our website information concerning some of the highlights of discovery to the case to date.


This section of the website may be supplemented from time to time as discovery progresses.


A. Kyle Bass

B. Supplemental Crime-Fraud Motion

  1. Ex. B – Bass indicates intent to ‘pull the plug on UDF’ (3.5.2015)
  2. Ex. C – Hayman presentation reflects plan to put UDF’s largest borrower into bankruptcy (3.30.2015) 
  3. Ex. F – Bass tells Hicks UDF ‘is all about to come crashing down’ (12.10.2015)
  4. Ex. H – Bass forwards his Harvest posts to his Dallas friends stating a ‘billion dollar Ponzi scheme right on our backyard!’ (12.10.2015)
  5. Ex. I – Bass Friend – ‘I hope you make an ass ton of money shorting this f’ers securities’ (12.15.2015)
  6. Ex. O – Bass uses personal email to ask Andy Left ‘please protect me’, i.e. keep Bass anonymous (12.7.2015)
  7. Ex. P. Hicks says ‘Kyle’s fund just made 50% on shorting the shares of UDF last week’ (12.14.21)
  8. Ex. Q – Bass tells trader ‘I only want to cover what we absolutely have to as every share we cover is lost $$$ when it hits zero’ (12.16.2015)
  9. Ex. R Hayman seeks help from Edelman to design a communication strategy to both control the message and maximze the reach of the message (12.22.2015)
  10. Ex. S – Edelman tells Hayman ‘The need to control the message is tantamount’ (12.23.2015)
  11. Ex. T – Lewis emails Bass – ‘Regardless of whether our message is true, the messaging will be critical’ (12.22.2015) 
  12. Ex. U – Edelman states if Hayman goal is ‘driving to zero’, it becomes campaign mentality where we are anti-investor relations team’ (12.23.2015)
  13. Ex. W – Edelman – ‘We’re as serious as you are, if you want to win’ (12.28.2015)
  14. Ex. Y – Hayman Capital’s goals include coaxing regulatory action; affecting the business outcome of their position (1.7.2016)
  15. Ex. Z – Edelman states ‘this is an attack on a company’ (1.9.2016)
  16. Ex. BB – Regarding UDFexposed.com, Bass ‘specifically asked that we include hyperbolic quotes’ which would be ‘powerful’ (1.18.2016)
  17. Ex. CC – Bass makes efforts ‘to circulate [UDFEXPOSED.com] to the entire DFW real estate crowd’ (2.5.2016)
  18. Ex. GG – Bass brags to one of his buddies ‘shorted it at 18$…headed to zero. Amazed that they aren’t in jail yet’ (2.9.2016)
  19. Ex. II – Bass emails a friend ‘Keep your eye on UDF…I can’t imagine how it all holds together after all of this.’ (2.17.2016)
  20. Ex. JJ – ‘Hayman needs to know this week, in order to alert regulators and FBI in advance of the break’ (1.20.2016)
  21. Ex. JJ – Edelman notes ‘Timeline could be short based on governmental action in next 2-3 weeks’ (12.28.2015)
  22. Ex. KK – Edelman employees discussed information obtained from Bass about ‘some potential activity on Thursday [February 18]’ (2.16.2016)
  23. Ex. LL – Edelman is ‘asked to scenario plan for an FBI SEC raid’ and prepares ‘media blitz’ two days before it happened (2.16.2016)
  24. Ex. MM – Edelman sets up ‘Hayman Scenario Plan’ meeting in the ‘Bonnie or Clyde’ room at ‘Bass’ request’ (2.16.2016)
  25. Ex. NN – On the morning of FBI Raid Edelman discusses a ‘federal raid’ ‘that validates Hayman’s position over the last few months’ (2.18.2016)
  26. Ex. SS – Edelman employees email Parker Lewis at Hayman about work to ‘light a fire at S.E.C.’ (2.18.2016)
  27. Ex. TT – Edelman notes their work to ‘leverage contacts to raise awareness in SEC’s backyard’ (1.10.2016)
  28. Ex. UU – Edelman wants to ‘aggressively pressure SEC in its back yard’ (1.14.2016)
  29. Ex. VV – Edelman notes ‘the goal is to pressure SEC to shut down UDF — driving the price to zero essentially.’ (1.13.2016)
  30. Ex. AAA – Edelman states in internal email ‘Nothing like an FBI raid as the tactic that proves out your strategy’ (3.11.2016)
  31. Ex. BBB – Hayman’s desire is to keep the public from hearing UDF’s response to Hayman’s story (2.5.2016)
  32. Ex. FFF – Hayman begins discussing internally how to interfere with UDF’s hiring of a new auditor (11.20.2015)
  33. Ex. GGG – Parker Lewis notes the importance of negative press attention on UDF making it ‘much more difficult to sign up an auditor’ (1.26.2016)
  34. Ex. III – Edelman understands Hayman ‘wants our strategy to focus around making UDF even more untouchable to any potential auditors’ (6.3.2016)
  35. Ex. JJJ – Edelman discusses Hayman’s strategy to post an open letter ‘geared towards an auditor audience’ if UDF hires auditor (6.18.2016)
  36. Ex. KKK – Edelman discusses ‘more of an IR strategy for when they re-open (enticing investors do dump with an open letter’ (6.9.2016)
  37. Ex. MMM – Edelman drafts UDF Exposed ‘paid promotion strategy to successfully target Eisner Amper’ (8.10.2016)
  38. Ex. OOO – Edelman worried people would think Hayman was ‘acting desperate because YTD performance is awful and outflows are swelling’ (8.10.2016)
  39. Ex. QQQ – Bass tells Seeking Alpha his posts were anonymous because ‘I was trying to keep my kids safe from the CEO’ (12.11.2015)
  40. Ex. WWW – Hicks and Hayman prepare plan to create new company to employ Parker Lewis to assist in acquiring UDF-related assets on the cheap (12.14.2015)

C. Edelman

  1. Hayman Communications Campaign Summary and Timeline (1.3.2016)
  2. Pending Impact to UDF’s share price (1.4.2016)
  3. What is the state-of-play with the regulators: SEC? FBI? States/district attorneys? (1.5.2016)
  4. This is an attack on a company involved in a Ponzi scheme.  Is there an icon that we can create that represents a Ponzi scheme…Pyramid-like (1.9.2016)
  5. Hayman UDF Exposed Launch Day Planning (1.22.2016)
  6. UDF Website Update (2.2.2016)
  7. We released the website quietly on Tuesday to our investors (2.4.2016)
  8. This is Perfection. Business objective: Drive stock to zero OR push regulatory bodies, like the SEC, to act (2.9.2016)
  9. Edelman Presentation to Hayman Capital. Business Objectives: (1) Drive Stock to zero, (2) push regulatory bodies (SEC, FBI) to act or (3) prevent UDF from retaining an auditor (2.9.2016)
  10. Kyle had dinner with Richard Edelman last night in San Francisco, he sang the praises of your team (2.10.2016)
  11. Lewis – Our primary goal is that investors who own UDF IV sell their shares and sell in volume (2.14.2016)
  12. Hayman Objectives, Strategy, Res-set – Our primary goal is that investors who own UDF IV sell their shares and sell in volume (2.16.2016)
  13. Stock is off 12%. Will likely halt trading soon. Lets get a strategy to: Amplify the negative stories. (2.18.2016)
  14. Non-Traded REIT Article – It seems like the exact type of article we’d want to light a fire at S.E.C without being too obvious or overbearing (2.18.2016)
  15. Lets begin the media blitz immediately; Stock is down 54% …$3.20; We close the remaining position at ~3…per Parker (2.18.2016)
  16. Hayman does not want to be too public today…there’s a probable reason I can call you about it you want (2.18.2016)
  17. No doubt the media pressure that we’ve applied has played a role. Very Cool (2.18.2016)
  18. We think its safe to say that this will have a big impact on the local real estate community (2.18.2016)
  19. Keep running up the score…there’s no mercy rule here, right? We’ve also ensured UDF’s SEO is permanently ruined – quite the tally. Congrats (2.18.2016)
  20. Revised objectives for media coverage, post-raid, are primarily to feed the negative news cycle…When the shares get below $2, Hayman likely sell (2.19.2016)
  21. Steve Brown –  Dallas Morning News “What is wrong with this guy?” (2.19.2016)
  22. Mitchell Schnurman – Dallas Morning News “the risk of having another Steve Brown incident.” (2.25.2016)
  23. If trading resumes, these steps will support our PR efforts, which will provide continued pressure on the stock price. This will support the unwinding of Hayman’s short position, suppressing the overall stock price and further maximizing Hayman’s profits (3.2.2016)
  24. I just wouldn’t want anyone thinking Hayman is acting desperate because YTD performance is awful and outflows are swelling. Targeting accountants working in the DFW area on LinkedIn, had considerable love from the client (8.10.2016)
  25. Edelman has developed a proposed paid promotion strategy to successfully target EisnerAmper employees, accountants and auditors in the Dallas-Fort Worth area (8.10.2016)
  26. We will want all tweets/blog posts to be as appealing as possible for auditors/accountants…think clickbait for numbers nerds (8.11.2016)
  27. Hayman Digital Strategy and Paid Promotion Strategy (8.11.2016)

D. Mackinac Partners

  1. Went to a meeting with Hayman Capital. Hayman is about to go activist on UDF (12.18.2014)
  2. Parker Lewis Can’t Lose jacket (3.5.2015)
  3. Stubbs to Dakan – Everything we talked about this morning is out the window (5.17.2016)
  4. Major focus on UDF … critical to begin forensic efforts immediately separate and apart from running the business and managing assets.  Hayman asked me to participate in FBI Meeting (5.19.2015)
  5. Hayman spoke to the FBI today and cleared our attendance at the end of their meeting.  Hayman is ordering BBQ for us at their office (5.22.2015)
  6. I will be in Dallas for a meeting with Hayman Capital (5.23.2015)
  7. Maybe we could get the company that owns the adjacent land to low ball Mehrdad (6.4.2015)
  8. How do we monetize (6.6.2015)
  9. Meeting is set for tomorrow with Hayman, McCartin and me.  Patrick met with the FBI today (6.17.2015)
  10. Call with Steve McCartin and me regarding our meeting with Hayman today (6.18.2015)
  11. Game plan to approach the SEC regarding receivership (6.19.2015)
  12. Dakan – Heyman Capital – Mackinac Partners Joint Venture to acquire and manage UDF assets (8.5.2015)
  13. Mackinac Presents DDO Strategy to Hayman (9.24.2015)
  14. Dakan wants to understand special districts better (10.12.2015)
  15. Make a Poor Impression (10.12.2015)
  16. Dakan – I’m thinking we might need to underwrite a deal without a PID. Lewis – Too late at this point (10.13.2015)
  17. He’s going to have a couple of his FBI bigwigs there tonight he just told me.  Think about potentially using him to get us some Intel … he has some great contacts inside the Bureau (11.4.2015)
  18. Dakan – The news has broken.  McCartin – This will be fun to watch.   (12.10.2015 – 12.11.2015)
  19. Just landed in Dallas and headed directly to Hayman. Stay Tuned. Things are going to move quick. (12.11.2015)
  20. Feb 4 Just wait. (2.4.2016)
  21. As Called (2.18.2016)

H. Starley/Cielo/Dakan

  1. Bill Benton advises Starley to never go into a gun fight with a pocket knife (1.10.2013)
  2. Cielo circulates reorganization strategy chart for acquiring Buffington Homes and Buffington Land (9.30.2013)
  3. Buffington Mackinac Plan (10.24.2013)
  4. Buffington tells his investors UDF did not force him to buy lots (12.25.2013)
  5. Rulon Starley (BHG investor and Patrick’s dad) asks him if he constructed take over plan and first step is to take UDF out (1.9.2014)
  6. This law suit thing killed me (4.3.2014)
  7. Heat will wear TB out (4.10.2014)
  8. Stay off Buffington email (6.24.2014)
  9. Dakan Introduces Jeff Wells to Patrick Starley (3.18.2015)
  10. Starley emails Dakan June 2015 Buffington Investor Presentation (7.18.2015)
  11. Starley emails FBI agent Klimek 1.14.2010 presentation to UDF (7.24.2015)
  12. Buffington Sources and Uses (8.18.2015)
  13. Buffington Investor wants Starley to force UDF to abandon investment in Buffington Homes (8.26.2015)
  14. Rulon Starley – Does an SEC takeover of UDF supersede an attendant bankruptcy process (12.14.2015)
  15. Meet Up Soon (2.19.2016)
  16. Patrick Starley – ‘Life’s good’ day after FBI raids UDF (2.19.2016)
  17. Buffington Homes (8.1.2016)
  18. Buffington Matt Taylor to Dakan I have been asked to contact you in regards to your interest in the possible acquisition of the company (8.2.2016)
  19. I did not know BAG was involved or I would have reached out to Tony (8.2.2016)
  20. Mack Hicks to Thomas Hicks, Jr., Thomas O. Hicks, Dary Stone, Farley Dakan – Pretty Interesting (8.30.2016)
  21. Hopefully this is the nail in the coffin (10.19.2016)
  22. Hopefully this is the nail in the coffin.  OTC market has it trading at $1.50/ (10.19.2016)
  23. What you are doing sounds really interesting (11.18.2016)
  24. UDF Class Stay Hayman’s Parker Lewis to Dakan (1.4.2017)

O. Hayman’s Contacts with the SEC, FBI and DOJ

  1. FBI asks Bass if he can bring representatives of the US Attorneys Office and the SEC to the 4/17/2015 meeting at Hayman’s office (4.16.2015)
  2. Prepare a synopsis for the SEC and the other relevant people (5.6.2015)
  3. FBI Meeting. How many guys in suits. Signal App. We were able to borrow 25K today. (5.16.15)
  4. Hayman meeting with FBI SEC so should have some recent color (5.18.2015)
  5. Hayman sends UDF Q1 2015 Update to SEC (5.19.2015)
  6. Hayman sends UDF Q1 2015 Update to FBI (5.19.2015)
  7. News breaks of UDF (6.12.2015)
  8. Thanks for the Intel (6.16.2015)
  9. Add exposure around a negative UDF RCAP event (7.28.2015)
  10. Based on everything I know (7.30.2015)
  11. Send to the relevant authorities (8.18.2015)
  12. Update on what we have learned (8.18.2015)
  13. Let me know when you have a few minutes to discuss UDF (11.12.2015)
  14. Uncertainty in Timing. Will happen in December (11.24.2015)
  15. Call when you have a minute (12.4.2015)
  16. Nick please give me a call (12.4.2015)
  17. Short as much UDF everyday as we can get a locate on (12.4.2015)
  18. Thanks for the heads up (12.9.2015)
  19. The attached is being provided to Harvest (12.9.2015)
  20. Prison Time for UDF Short Sellers (12.11.2015)
  21. Just returned your call (1.29.2016)
  22. Let Me In (1.29.2016)
  23. If you were to reach out to him, he will keep you in confidence (1.29.2016)
  24. No one will be caught off guad as we have also communicated our plans to the SEC and FBI (2.2.2016)
  25. Rumour mill on indictments or subpoenas (2.12.2016)
  26. Still early in San Francisco. Sorry about that. (8.10.2016)
  27. I’m back now and will take a look at what you sent (8.10.2016)
  28. This call is a courtesy call (8.10.2016)
  29. Green light to post (8.30.2016)
  30. Filing will be kept secret (non-public) but I want to make sure there aren’t any objections on your side (10.7.2016)
  31. Starley Bunch and Edson email exchange regarding 2015 Starley Klimek meeting (7.17.2018)