Cardone Capital, LLC and its CEO Grant Cardone, a social media influencer, author, and real estate investor, are the subject of a class action lawsuit filed on behalf of investors. The lawsuit alleges Cardone and his company made false and misleading statements and omitted material facts related to public offerings of interest in Cardone Equity Fund V and Cardone Equity Fund VI.
Cardone Capital, LLC
Cardone Capital, LLC is a real estate investment company that raises money through crowdfunding. The company uses investor money to buy multi-family rental properties, and uses the income to pay monthly distributions to investors. Cardone and Cardone Capital state in social media posts that the funds will deliver a high rate of return and claimed to give investment opportunities to “everyday investors” that are normally only available to the wealthy.
Investments are made through Cardone Capital’s equity funds, such as Cardone Equity Fund V, LLC (Fund V) and Cardone Equity Fund VI, LLC (Fund VI). Cardone Capital’s headquarters are in Aventura, Florida.
Among the alleged false and misleading statements, the complaint states that Fund VI advertised that a property it had an interest in, 10X Living at Panama City Beach in Florida, had a targeted investor internal rate of return of 17.88%. The complaint states Cardone Capital had no basis for such returns, and the statements were materially false and misleading.
Another property, 10X living at Breakfast Point, advertised a target internal rate of return of 15%, which the complaint also states was false and misleading.
It is also alleged that Cardone Capital failed to disclose that Grant Cardone already acquired 10X Delray (a/k/a Atlantic Delray Beach), and that investors were paying Grant Cardone an acquisition fee when he already owned the properties.
Cardone Capital’s website states that it has funded properties in multiple cities in Florida, including Naples, Sunrise, Orlando, Port St. Lucie, Ormand Beach, Stuart, Lake Worth, Palm Bay, Daytona Beach, as well as Columbia, Maryland; Daphne, Alabama; Savannah, Georgia; and Austin, Houston, and Sugarland, Texas.
The complaint alleges that Cardone Capital represented to investors that it would pay monthly distributions to investors from available cash flow, but suspended distributions in April, 2020.
The class action lawsuit seeks to recover damages for investors.
Recovering Investment Losses
If you have investment losses with Cardone Capital, contact Silver Law Group, a class action law firm representing investors, to discuss options to recover your losses.
Silver Law Group is a nationally-recognized law firm representing victims of investment fraud. Our attorneys represent investors in class action lawsuits in state or federal court and in securities arbitration claims against Wall Street firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and a frequent speaker about securities and investment fraud. Contact us today for a no-cost consultation at firstname.lastname@example.org or toll free at (800) 975-4345.