
Allegations have surfaced against several investment firms and individuals in the Dallas-Fort Worth area, including Scott Everett, David Lilley, and Chris Powers. These individuals are accused of scamming investors and facing significant trouble with their failing investment firms. Meanwhile, Arbor Realty Trust ($ABR) is reportedly in financial distress, generating approximately $65 million in cash flow over the last six months, which is insufficient to cover its $197 million in common and preferred dividends. The company is allegedly in run-off mode, with concerns about its ability to maintain its dividend payments without raising equity or equitizing preferred shares. Additionally, there are accusations of fraud involving undisclosed related party transactions by Kaufman, who unsuccessfully attempted to raise a distressed debt fund multiple times.
Mathematically there is no way that $ABR can support its existing common dividend without some combination of raising equity and /or equitizing the preferred. It’s a negative sum game.
$ABR - They knew how bad it was when Kaufman tried to raise a distressed debt fund three times. He failed on all attempts, resorting to undisclosed related party transactions. This is fraud! https://t.co/MNObNcQZ0B
$ABR - Realising things dont add up. The company is in complete run-off mode. https://t.co/QrNwkTwQx0
