The daughter of a deceased investor is taking over a monumental legal battle against Grant Cardone, the controversial social media influencer who’s built a vast multifamily empire based in Aventura.
Christine Pino recently filed a class action lawsuit in Los Angeles federal court against Cardone and his firm, Cardone Capital, on the heels of her father’s death, The New Republic reported.
Her dad, Luis Pino, had filed a similar complaint against Cardone and his company that was dismissed in 2021, and then reinstated last year following an appeal, as previously reported by The Real Deal.
The New Republic framed its profile of Cardone as a deep dive into the Louisiana-born scientologist’s sales tactics, which some critics have denounced as unethical and unprofessional. Christine Pino’s lawsuit “offers an inside look at a get-rich-quick scheme that could help enable the next housing market crash,” the article’s subhead states.
In addition to dissecting Christine Pino’s complaint, The New Republic also interviewed former tenants of apartment complexes and buildings Cardone has bought. They relayed horror stories about their experiences with their new landlord.
Cardone’s real estate strategy entails buying top-tier multifamily buildings and rental communities with leveraged debt, and then selling small ownership stakes in the properties to retail investors through funds he manages. Cardone collects fees from the acquisition, management and disposition of the assets.
Cardone recruits investors via social media, business seminars and an annual conference featuring A-list celebrities who sit down for fireside chats with him. Last year, former President Donald Trump headlined Cardone’s 10X Growth Conference at the Diplomat Beach Resort in Hollywood.
On Instagram, TikTok, YouTube and other platforms, Cardone is constantly posting videos of his lavish lifestyle and his ostentatious tastes, such as showing off his collection of Richard Mille designer watches. In 2021, Cardone paid $28 million to fashion designer Tommy Hilfiger for a Golden Beach mansion. A year later, he dropped $40 million for a beachside home in Malibu.
According to Christine Pino’s lawsuit, her father, who lived in Inglewood, California, invested $5,000 in one of Cardone Capital’s real estate funds after attending a Cardone event in 2019. Like her father’s complaint, her lawsuit alleges Cardone misled investors in social media posts geared to entice prospective investors.
Cardone also allegedly consistently over-promised investor returns, downplayed their financial liability and was not completely forthright about the fees he collected, Chrstine Pino’s lawsuit states. Cardone refused to adjust his sales tactics despite receiving a warning from the Securities and Exchange Commission, Christine Pino alleges.
— Francisco Alvarado