Kyle Bass Says SEC ‘Blew It’ Twice in Handling of UDF Scandal

Activist investor Kyle Bass said the Securities and Exchange Commission was too lenient with a fraudulent Texas real estate fund he exposed years ago and is now botching his attempts to be paid as a whistleblower.

“I turned a fraud in where one of my analysts found a Ponzi scheme and the SEC actually just completely dropped the ball,” Bass, the founder of Hayman Capital Management, said in a Bloomberg Television interview Thursday, referring to United Development Funding. Bass brought his concerns about the company to the SEC and mounted an anonymous online attack against the company, earning an estimated $30 million by selling UDF stock short.

Source: Kyle Bass Says SEC ‘Blew It’ Twice in Handling of UDF Scandal