Elena Cardone posted this on Facebook. She convinced Grant to open a non-accredited fund for friends and family. Elena mentions that this all per FCC rules.
Memo to Elena: The Federal Communications Commission does not regulate securities. What you meant to say was the SEC as in the Securities & Exchange Commission. This sort of mistake does not inspire confidence in potential investors. Report to Cramming and clear up this misunderstood so that your potential investors don’t get jittery. Financial terms are very precise and must be kept that way, particularly as they relate the Federal regulatory agencies.
A “non-accredited investor” is defined as:
An investor who does not meet the net worth requirements for an accredited investor under the Securities & Exchange Commission’s Regulation D. A non-accredited individual investor is one who has a net worth of less than $1 million (including spouse) and who earned less than $200,000 annually ($300,000 with spouse) in the last two years.
When a company raises private equity for an investment, such as a new company or a hedge fund, it is able to receive unlimited investments from accredited investors. On the other hand, Regulation D stipulates only 35 non-accredited investors are allowed to invest money into a private placement.
Grant and Elena Cardone are looking for 35 non-accredited investors. Why? Grant’s website says he has $450 million invested in apartment complexes. In another place he claims close to a billion dollars. Given these numbers, why would Cardone be looking for non-accredited investors from among family and friends? The portfolio of properties shown on his website should easily attract accredited investors with serious money, particularly given the attractiveness of apartment rental units as more people become unable to afford to purchase homes due to the growing income inequality in America. This is a Scientology-related matter worth keeping an eye on.
I’m not a hater Grant. I enjoy watching you and Elena work. Besides, now that Bob Duggan is off the Scientology radar, you have to step up and fill the billionaire vacuum in Scientology. Do it. I’ll even show you some support. I like your twin brother Gary too: