Gibbs Law Group is investigating a class action lawsuit against Cardone Capital, LLC on behalf of investors in the Cardone Equity Fund V and Equity Fund VI. According to a recently filed lawsuit, Cardone Capital and its CEO, Grant Cardone, allegedly made false or misleading statements and omitted important information in connection with the public offerings of these two funds.

If you invested in Cardone Equity Fund V or Cardone Equity Fund VI, you may have a claim. Speak with an investment fraud lawyer to learn more about your options.

Invest with Cardone Capital?

You may have a claim. Get a free and confidential consultation.

  • This field is for validation purposes and should be left unchanged.

1-866-861-5576

Cardone Capital Accused of Misleading Investors; Funds Estimated Value May Be False

Cardone Capital is an investment company that provides real estate investment opportunities through crowdfunding. Cardone Equity Fund V and Cardone Equity Fund VI are reportedly large funds, with Cardone Equity Fund V being the “largest Reg A+ crowdfunding ever done for real estate investment of this quality using social media,” according to Grant Cardone’s Instagram.

According to a recently filed lawsuit, Cardone Capital and Grant Cardone targeted “everyday investors,” through social media. These solicitations were allegedly misleading to many investors. For example, the lawsuit complaint states that Grant Cardone assured investors through these solicitations that their investments would pay high monthly distributions and would return to investors at least two to three times their investment. He gave specific examples, as stated in the lawsuit complaint:

  • Investing $100,000 would pay $500 in distributions monthly
  • Investing $200,000 in the fund would result in a $660,000 “position” in the fund
  • Investing $200,000 would allow investors to early $12,000-$15,000 in distributions a year
  • The property investors invest in would triple in value in 5 to 7 years

However, according to the lawsuit, the actual distributions have been much less than these stated amounts. Further, the complaint states that Cardone had no reasonable basis for estimating investors’ distributions or the value of the property to be so high. As a result, these statements have been deemed false and misleading.

Grant Cardone Omits Risks of Cardone Equity Funds V and VI

In addition to allegedly misleading investors as to the value of the Cardone Funds, Grant Cardone is also accused of failing to disclose the risks of investing in these Funds. The lawsuit states that Cardone told investors that Cardone Capital was built on stable assets. However, Cardone reportedly failed to sufficiently warn investors of the risks involved in the particular real estate properties they would be investing in. This includes failing to disclose how the Fund’s properties would be financed, and the interest Cardone would charge the Funds to acquire such properties.

According to the complaint, Cardone used investor funds to pay the debt service for the Funds.

Investors who feel they were misled about the risks of investing in the Cardone Equity Funds may have a claim. Contact us today to learn more about your options.

Our Securities Lawyers Have a Winning Record Against the World's Largest Companies Like Cardone Capital

Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.

 

“My in-laws lost their retirement funds to a dishonest broker. Silver Law Group and Scott Silver aggressively pursued their losses until he got their money back.”

-Silver Law Group client, Ben M.

 

 

“You and your entire staff have been wonderfully organized, professional and a delight to hear from. Usually that is not the case when dealing with legal matters – but you guys (gals) rock.”

-Gibbs Law Group client, Amy

Praise from the Courts

Federal judge in our AT&T class action:

“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”

Federal judge in our Chase lawsuit (resulting in $100 million settlement):

They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”

Read more about what judges say about us.

Scott Silver

Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.

Michael Schrag

Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.

Eileen Epstein

Eileen is involved in the firm’s securities practice and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

David Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Amanda Karl

Amanda is spearheading a securities lawsuit against NantHealth concerning fraudulent statements to investors about the success of its key product.

Our Financial Fraud Experience

Gibbs Law Group

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. The firm has successfully litigated against some of the largest companies in the United States, and has recovered more than a billion dollars on clients’ behalf.

Gibbs Law Group attorneys have fought some of the most complex cases brought under federal and state laws nationwide, and have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern CaliforniaTop Plaintiff Lawyers in CaliforniaThe Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).

Silver Law Group

Silver Law Group is a team of securities lawyers, forensic accountants, and support staff who are dedicated to helping investors recover losses through securities arbitration and litigation.

The firm is led by Scott Silver, a former Wall Street defense attorney who has been representing customers in securities and investment fraud cases since 2002. Scott is admitted to practice in New York and Florida and the firm’s FINRA arbitration attorneys represents investors nationwide.