Grant Cardone created Cardone Equity Fund IX in late 2019.
Cardone Capital and published details of the $50 million offering on January 27, 2020. This was two months before the COVID-19 pandemic hit. Cardone Equity Fund IX was a Reg A offering which meant that Cardone was focusing on unaccredited investors. Specifically, Cardone wanted to sell 50,000 Class A interests at $1,000 each.
In the initial publication, Equity Fund IX seemed like just another plain vanilla effort by Grant Cardone to raise $50 million to buy more apartments. However, being a Scientologist means that one never wastes an opportunity to profit from a crisis. This is why Scientology leader David Miscavige has been using the pandemic to promote Scientology as having taken leadership in the crisis. Miscavige’s lawyer Jeff Riffer wrote a ridiculous threat letter to Marlow Stern of The Daily Beast in which he made this laughably ridiculous statement:
The world would be in a better condition today had governments and other organizations timely followed Mr. Miscavige’s lead.
Right. The governments of the world could have averted catastrophe had they taken the advice of a high school drop out who runs a religious cult. In any case, Grant Cardone smelled money in the pandemic and retooled his Equity Fund IX as we see on Cardone Capital’s website:
Grant Cardone was suddenly looking to pick the bones of those poor souls who were financially destroyed by the pandemic and had to sell their real estate at fire sale prices. But then Cardone himself was seized by panic as the reality of the pandemic set in and his own cash flow and assets seemed threatened.
As we documented, Cardone engaged in erratic behavior which included a bizarre and incredibly irresponsible PR stunt in which he claimed his company was going bankrupt. Cardone froze monthly distributions to his investors.
Suddenly and without fanfare, Cardone Capital sent the US Securities and Exchange Commission the following letter via EDGAR on May 5, 2020 in which he withdrew Cardone Equity Fund IX:
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Request for Withdrawal of Offering Statement on Form 1-A, exhibits, and subsequent amendments
(File No. 024-11142)
Ladies and Gentlemen:
On behalf of Cardone Equity Fund IX, LLC (the “Company”), we hereby submit
this letter to notify the Securities and Exchange Commission (the “SEC”) its intent
to withdraw the Offering Statement on Form 1-A, all exhibits thereto, initially filed
and as subsequently amended on March 17, 2020 (Acc-no: 0001477932-20-001372)
The Company submits this request for withdrawal as it does not intend
to pursue the contemplated offering at this time. Since the Offering Statement
was not declared qualified by the Commission, the Company hereby confirms
that no securities have been or will be sold or monies collected according
to the Offering Statement.
/s/ Grant Cardone
Managing Member of Cardone Capital, LLC
Cardone Equity Fund IX was disposed of quietly and without sorrow on May 5, 2020.
What happened? Why couldn’t Grant Cardone, the man who thinks he’s the greatest salesman in the world, sell out a small $50 million fund?
Cardone talks out of both sides of his mouth. On May 26, 2020 Cardone was telling Yahoo Finance: “This becomes the moment to buy things, not get rid of things.” If he believed this, it seems, Cardone would not have withdrawn Cardone Equity Fund IX. Instead, he would have raised the $50 million and went out and purchased some distressed properties for bargain prices.
Cardone Capital’s website still shows Cardone Equity Fund IX being offered. It needs to be taken down. Cardone Capital is also showing its new goal of seeking distressed assets:
We have a few distressed assets in mind in Hollywood that Cardone Capital should definitely consider. These are boarded up properties that have had very low occupancy rates for decades:
The prospectus for Cardone Equity Fund IX suggested a definite shift in strategy and focus within Cardone Capital (emphasis ours):
The Company has been formed to acquire various real estate assets throughout the United States. Although the Manager intends to initially search for properties located in Arizona, Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Tennessee and Texas, the Company will not limit itself geographically… It is expected that the Company will focus on Class A and B multifamily properties, but will also, under certain circumstances, consider commercial real estate assets such as self-storage, warehouse and industrial, office, and retail properties.
Grant Cardone has incessantly preached to his followers that retail and office real estate investments are the kiss of death. And yet he reserves to himself, as Manager, the right to purchase these deadly assets wherever they may be located. This is a contradiction between what Mr. Cardone preaches and what he reserves the right to do. There is no consistency here.
From a Scientology perspective, we are hereby assigning Grant Cardone the Ethics Condition of CONFUSION. From Scientology’s website:
The lowest condition is a Condition of Confusion. In a Condition of Confusion, the being or area will be in a state of random motion. There will be no real production, only disorder or confusion. In order to get out of Confusion, one has to find out where he is.
Categories: The Scientology Money Project