Description: Fort Worth, Texas criminal defense lawyers represented defendants charged with fraud.

In January, a federal jury convicted UDF CEO Hollis Morrison Greenlaw, UDF Partnership President Benjamin Lee Wissink, UDF CFO Cara Delin Obert, and UDF Asset Management Director Jeffrey Brandon Jester of ten counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud. They were sentenced today by U.S. District Judge Reed C. O’Connor.

Mr. Greenlaw was sentenced to seven years in federal prison; Mr. Wissink to five years; Ms. Obert to five years; and Mr. Jester to three years. The judge also ordered Mr. Greenlaw, Mr. Wissink, and Ms. Obert to pay fines of $50,000 each.

“UDF executives comingled funds, shuffling money from one fund to another without disclosing their actions to investors or regulators,” U.S. Attorney Chad Meacham said following the verdict. “The Northern District of Texas has always been tenacious in its pursuit of white collar criminals and this case is no exception. We were proud to bring these defendants before a jury and are pleased that the judge saw fit to sentence them to a lengthy prison term.”

“Today’s sentences reaffirm the FBI’s commitment to hold executives accountable for engaging in corporate fraud and defrauding investors. We will continue working with our partners to investigate anyone that attempts to manipulate investment funds for their own personal benefit,” said Matthew DeSarno, Special Agent in Charge of the FBI’s Dallas Field Office. “Our agents, analysts, and forensic accountants dedicated years to ensuring this investigation was done with the utmost precision. It is the reason why these defendants will now spend years in federal prison.”

According to evidence presented at trial, the defendants orchestrated a scheme to mislead investors and the SEC about their funds’ performance.

Founded in 2003 and headquartered in Grapevine, UDF utilized a family of five funds – UDF I, II, III, IV, and V – to invest in various residential real estate developers and private homebuilders.

When developers failed to repay money they borrowed from one fund, triggering multi-million dollar shortfalls, the defendants transferred money out of another fund in order to pay distributions to the original fund’s investors, all without disclosing the transfers to the SEC and the investing public.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Tiffany H. Eggers (NDTX Criminal Chief), Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case.

18 U.S.C. §1349 (18 U.S.C. §1343) Conspiracy to Commit Wire Fraud Affecting a Financial Institution
(1)

18 U.S.C. §1349 (18 U.S.C. §1348) Conspiracy to Commit Securities Fraud
(2)

18 U.S.C. §§1348 and 2 Securities Fraud and Aiding and Abetting
(3-10)

Outcome: 05/20/2022 447 Sealed Motion to File Under Seal - Response in Opposition (Sealed pursuant to motion to seal) as to Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester filed by USA. (Attachments: # 1 Response in Opposition, # 2 Exhibit(s) 1, # 3 Exhibit(s) 2, # 4 Exhibit(s) 3, # 5 Exhibit(s) 4) (Eggers-DOJ, Tiffany) (Entered: 05/20/2022)
05/20/2022 448 ELECTRONIC ORDER granting sealed and/or ex parte motion 446 in case as to Hollis Morrison Greenlaw (1), Benjamin Lee Wissink (2), Cara Delin Obert (3), Jeffrey Brandon Jester (4) (Clerk to enter the sealed and/or ex parte document as of the date of this order.) (Ordered by Judge Reed C. O'Connor on 5/20/2022) (Judge Reed C. O'Connor) (Entered: 05/20/2022)
05/20/2022 449 ELECTRONIC ORDER granting sealed and/or ex parte motion 447 in case as to Hollis Morrison Greenlaw (1), Benjamin Lee Wissink (2), Cara Delin Obert (3), Jeffrey Brandon Jester (4) (Clerk to enter the sealed and/or ex parte document as of the date of this order.) (Ordered by Judge Reed C. O'Connor on 5/20/2022) (Judge Reed C. O'Connor) (Entered: 05/20/2022)
05/20/2022 450 ORDER DENYING 451 as to Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester denying motion to recuse/continue (Ordered by Judge Reed C. O'Connor on 5/20/2022) (Judge Reed C. O'Connor) Modified on 5/20/2022 (sre). (Main Document 450 replaced on 5/20/2022) (sre). (Entered: 05/20/2022)
05/20/2022 451 Sealed MOTION as to Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester filed by Defendant. (Notice: Any required service of this document is the responsibility of the filer.) (sre) (Entered: 05/20/2022)
05/20/2022 452 Sealed and/or Ex Parte Response re: 451 Sealed and/or Ex Parte Motion as to Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester filed by USA. (Notice: Any required service of this document is the responsibility of the filer.) (sre) (Entered: 05/20/2022)
05/20/2022 453 ELECTRONIC Minute Entry for proceedings held before Judge Reed C. O'Connor: Sentencing held on 5/20/2022 for Hollis Morrison Greenlaw (1), Count(s) 1 through 10. Pursuant to the Sentencing Reform Act of 1984, as amended, it is the judgment of the Court that the defendant, Hollis Morrison Greenlaw, in 4:21-CR-289-O(01), is hereby committed to the custody of the Federal Bureau of Prisons for a period of EIGHTY-FOUR (84) months as to Counts One through Ten, to run CONCURRENTLY for a TOTAL of EIGHTY-FOUR (84) months. The Court orders a fine in the amount of $50,000. It is further ordered that the defendant pay a special assessment of $1000. The Court does not order restitution. Supervised Release is Ordered for a term of FIVE (5) years, as to each count, to run concurrently, for a TOTAL of FIVE (5) years. The Court makes a non-binding recommendation to the BOP that Defendant, if appropriately classified, be allowed to serve his term of imprisonment as near as geographically possible to FCI Seagoville. The Defendant is ordered to voluntarily surrender to the designated BOP facility before 2:00 pm on Tuesday, July 5, 2022. Attorney Appearances: AUSA - Tiffany Eggers, Leslie Jones, Elyse Lyons, Beverly Chapman; Defense - Paul Pelletier, Rose Romero. (Exhibits admitted: Defense exhibits 1 (printout of presentation); 2 (printout of presentation); 3 (printout of objectives); 4 (copy of email from Kyle Bass); 5 (copy of FD-302 dated 5/6/2021); 6 (copy of FD-302 dated 3/29/2018); 7 (bound book of housing developments)) Time in Court - 1:39. (Court Reporter: Zoie Williams) (Interpreter N/A.) (chmb) (Entered: 05/20/2022)
05/20/2022 458 Notice of Right to Appeal Sentence and Sentence After Sentence Has Been Imposed in a Case Which has Gone to Trial on a Plea of Not Guilty as to Hollis Morrison Greenlaw. (sre) (Entered: 05/20/2022)
05/20/2022 Document unsealed per Chambers as to Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester 446 , 447 , 450 451 , 452 . (sre) (Entered: 05/20/2022)
05/20/2022 460 MOTION Relief Related to Bond Motion filed by Hollis Morrison Greenlaw, Benjamin Lee Wissink, Cara Delin Obert, Jeffrey Brandon Jester (Burnham, James) (Entered: 05/20/2022)
05/20/2022 464 MOTION Continued Release Pending Appeal filed by Hollis Morrison Greenlaw with Brief/Memorandum in Support. (Attachments: # 1 Proposed Order) (Romero, Rose) (Entered: 05/20/2022)
05/20/2022 465 NOTICE OF APPEAL to the Fifth Circuit by Hollis Morrison Greenlaw. Filing fee $505, receipt number 0539-12840567. T.O. form to appellant electronically at Transcript Order Form or US Mail as appropriate. Copy of NOA to be sent US Mail to parties not electronically noticed. IMPORTANT ACTION REQUIRED: Provide an electronic copy of any exhibit you offered during a hearing or trial that was admitted into evidence to the clerk of the district court within 14 days of the date of this notice. Copies must be transmitted as PDF attachments through ECF by all ECF Users or delivered to the clerk on a CD by all non-ECF Users. See detailed instructions here. (Exception: This requirement does not apply to a Defendant proceeding pro se.) Please note that if original exhibits are in your possession, you must maintain them through final disposition of the case. (Romero, Rose) (Entered: 05/20/2022)

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