RAD Diversified SCAM ALERT!!!

[Arthur Crum]

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 I also know that RAD's accreditation with the BBB has been revoked due to the massive influx of similar complaints that have been pouring in since the official statement was released on April 1st, 2024.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."

[Don Konipol]

When a deal pans out as projected, everyone (almost everyone) is happy.  When a deal does not, then the accusations fly.  So, let’s RATIONALLY take a look at the three possible scenarios.

1. The deal was legit, the sponsor was honest, all laws were complied with, the deal didn’t work as planned.  

2. The deal was legit, the sponsor was NOT honest, all laws were complied with, the deal didn’t work.

3. Scam from day 1.

Now some investments can fall between there numbers, or have aspects of 2 or more.  However, my impression is (1) many deals should NOT be sold to unsophisticated/un accredited/ not high net worth investors EVEN IF the law allows this, and (2) when a deal doesn’t pan out as projected the unsophisticated investors believe they’ve been “scammed”. 

Here are the biggest mistaken assumption unsophisticated investors make when contemplating an investment in a deal

1- that the Sponsor is an expert in the field of investment

2- that investments, economic markets, financial markets are predictable with any accuracy

3- that PROJECTED returns are PROMISED / GUARANTEED returns

4- that because they NEED their investment to be liquid the sponsor will provide said liquidity

5- that the “deal” is more important than the sponsor. 

[Jonathan Karas]

Feel like I've been thrown under the bus by them.  No communication.  Hard to know what's true, what's not.  I wish they'd just be completely honest.  Very troubling situation.