UDF Crashes 50% After FBI Raid

Update 2:55 p.m.: An FBI spokesperson confirmed agents are still "lawfullly present" on-site "conducting law enforcement activities."

The FBI raided the offices of the Grapevine, Texas-based United Development Funding IV UDF Thursday afternoon, according to NBC. The company has been accused by critics of operating as a Ponzi scheme.

NBC writes that, "The FBI raid was the first indication that a criminal investigation into the company was under way."

On February 5, Hayman Capital principal Kyle Bass put up a website called "UDF Exposed," offering an expose on "How a Texas real estate developer built a billion dollar house of cards."

That same day, Forbes contributor Brad Thomas wrote, "I asked [an FBI] agent whether or not UDF was being investigated by the FBI and the agent did not either confirm or deny allegations."

UDF wrote in an SEC filing dated December 14, 2015 that it was the victim of a "short and distort" trading attack that found the fund short over 4 million shares.

The FBI did not immediately respond to Benzinga's request for comment.

UDF shares fell more than 50 percent following news of the raid.