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RAD Diversified SCAM ALERT!!!
Hello,
I Just wanted to give everyone a quick update on the RAD Diversified scandal that is currently unfolding. As of April 1, 2024, RAD Diversified (a REIT), has officially put a freeze on withdrawing any and all funds from the REIT. If I had to speculate, I would say they are facing some serious liquidity issues. Interestingly enough, I came across an article in the Philidelphia Inquirer that raised concerns about the REIT two years ago. It's pretty much spot on. Looks like your classic Ponzi scheme. It would appear good ole Dutch has been using new investor funds to pay liquidations i.e. robbing Peter to pay Paul. I guess the well has run dry.
I myself was duped into investing $5000 (unaccredited) into the fund and will now no longer be able to liquidate any portion of my shares. The URL provided above will take you to official statement that RAD has provided to the SEC. Personally, I doubt its authenticity, but that's the direct information I was provided with from Alexander Prock, as of one hour ago. I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.
I would strongly advise ALL BP members to stay far away from this scam. I highly doubt I will ever see my money again. I would sincerely hope that the SEC has begun looking into this and/or the FBI. And, by the way, Dutch Mendenhall the CEO of RAD, has been a member of the BP community now for several years so feel free to chime in bud. Below is a copy of the SEC statement. It really makes me sick that these scam artists run rampant while the SEC does absolutely nothing to combat the issues. Anyway, please feel free to do your own due diligence but it looks like we all got got.
"On April 1, 2024, the board of directors (the “Board") of RAD Diversified REIT, Inc. (the "Company”) decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company’s redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024 nor will it accept any redemption requests after April 1, 2024. Pending redemption requests will remain in queue until the Company recommences the redemption program. The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
Arthur, Greetings from Maine!
Below is part of the SEC Statement RADD put out, which you noted. My question is did RADD make any formal statement on July1st regarding their Redemption Program?
I haven't heard anything.
"The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
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Quote from @Robert Geraghty:
Arthur, Greetings from Maine!
Below is part of the SEC Statement RADD put out, which you noted. My question is did RADD make any formal statement on July1st regarding their Redemption Program?
I haven't heard anything.
"The Board intends to reassess this decision to determine whether to recommence the redemption program or to continue to pause the redemption program no later than July 1, 2024."
All Reg A filings are public record on the SEC website: Yes they made a new submission:
Item 9. Other Events
On June 27, 2024, the board of directors (the "Board") of RAD Diversified REIT, Inc. (the "Company") met to consider its Share Redemption Program. Although the Board is beginning to see improved liquidity throughout the Company based on actions it has been and will continue taking, the Board perceives that the real estate market remains relatively stagnant. The Board therefore believes it prudent to proceed cautiously at this time. As a result, the Board decided, in accordance with the terms of its Share Redemption Program, to continue the temporary freeze of the Company's redemption program. The Company will not process any pending requests that have not been redeemed as of February 1, 2024, nor will it accept any new redemption requests. Pending redemption requests will remain in queue until the Company recommences the redemption program.
The Board intends to reassess this decision to determine whether to recommence the redemption program no later than January 1, 2025.
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Alan David:
interesting...
If they are in fact under review/subpoena with the SEC, the first thing your attorney should tell you is stop raising money and stop issuing distributions and lets get that squared away and make sure the books are in order and everything is up to snuff. Since they have not submitted their 2022 or 2023 audited financials (comments about that from them somewhere in this post), it all makes sense. This does not mean it will turn out good or bad, there have been offerings that ended badly and those that did not have any enforcement (boxabl is a recent example as they were under review and had no enforcements against them).
Time will tell. I have my hunches but my gut has been wrong many times.
Alll i can do is wait ive posted everywhere i could c about their practices
Quote from @Brent Mendenhall:
Quote from @Ethan Blue:
Quote from @Sebastian Bennett:
Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?
Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there.
@Ethan Blue Hey Ethan, we hope to see you at the next retreat. I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared. Have a great weekend.
As of last week (13 August 2024), I will no longer post/reply on behalf on RAD Diversified. I am no longer employed with the Company. Thank you.
Quote from @Brent Mendenhall:
Quote from @Brent Mendenhall:
Quote from @Ethan Blue:
Quote from @Sebastian Bennett:
Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?
Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there.
@Ethan Blue Hey Ethan, we hope to see you at the next retreat. I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared. Have a great weekend.
As of last week (13 August 2024), I will no longer post/reply on behalf on RAD Diversified. I am no longer employed with the Company. Thank you.
That's a shame, I really appreciated our communications. Wish you all the best.
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Brent Mendenhall:
Quote from @Brent Mendenhall:
Quote from @Ethan Blue:
Quote from @Sebastian Bennett:
Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?
Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there.
@Ethan Blue Hey Ethan, we hope to see you at the next retreat. I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared. Have a great weekend.
As of last week (13 August 2024), I will no longer post/reply on behalf on RAD Diversified. I am no longer employed with the Company. Thank you.
Thanks for the update - hope you stay on BP and continue to use the site.
Quote from @Brent Mendenhall:
Quote from @Brent Mendenhall:
Quote from @Ethan Blue:
Quote from @Sebastian Bennett:
Dutch sighting... Inner Circle Retreat Puerto Rico.... Are there some investors who are making enough profits to participate or are these new investors?
Inner circle retreats are for people who have already paid the 50k to be in the group. I have never been to one, but I have heard that they treat you well there.
@Ethan Blue Hey Ethan, we hope to see you at the next retreat. I'm not at the current IC Retreat, but I hear the group is enjoying themselves and great information being shared. Have a great weekend.
As of last week (13 August 2024), I will no longer post/reply on behalf on RAD Diversified. I am no longer employed with the Company. Thank you.
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#3 All Forums Contributor
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Quote from @Alan David:
even his relatives are fearful of the guy, and his ponzi scheme
Ya playing devils advocate who would want that job I mean look at just the bp threads waste of time for this gentlemen thankless job I dont blame him for moving on.. You have a gentlemen who served our country in the armed forces he does not deserve to be treated as you guys are doing .. lets face it you probably made and investment you did not understand or should not have done if your having financial difficulty because your interest stopped..
Quote from @Barbara Radke:
I have 25K invested. No one is answering the phones and the voice mail now sounds like an off shore answering recording. He is advertising like crazy for his upcoming seminar. Maybe us investors need to show up??
#1 All Forums Contributor
- Investor
- Virginia
Quote from @James Stevenson:
Quote from @Barbara Radke:
I have 25K invested. No one is answering the phones and the voice mail now sounds like an off shore answering recording. He is advertising like crazy for his upcoming seminar. Maybe us investors need to show up??
Well when someone with the same last name is no longer with the company, and the CEO is off doing other things, that is probably a good sign that they are very close or have shut down. I would not be banking on getting that $25k back. Hopefully I am wrong, but based on everything that has come out on - I am gonna go with my gut.
@Chris Seveney I don't even think you have to rely on your gut. The facts are clear, RAD operated illegally in Philadelphia...didn't apply for permits and licenses then misrepresented values of their assets which I understand were relied upon for their share prices. If this is any indication on how the portfolio was operated in other cities by RAD then I agree investors are not getting there capital back, at least not in full. I also find it hard to believe Philadephia was operated differently than the other markets where RAD invests. Add the fact Dutch's brother left the company and is not personally answering any investors questions, it's not looking good.
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@Alan David
Who are you gonna sue? At this point your probably throwing good money after bad as there are already lawsuits with the sponsor regarding who owns the assets as well as another regarding a custodian who claims they are owed five figures
This has been this sponsors MO. Start a business have it fail and do another…
He even talks about it on a podcast
https://lifebridgecapital.com/2019/05/14/ws205-becoming-debt-free-with-jorge-newbery/
Here is his new business that probably raise money for…
https://www.debtcleanse.com/princeandprince/home/about
Your better bet would to get the info the norada people have contacted to get them to look into it