The internet keeps calling it an SEC settlement. It never was — and the real story just got a trial date.
The internet keeps calling it an "SEC settlement." It isn't — and the real story just got bigger.
Search "Grant Cardone lawsuit" and you'll find a hundred pages claiming his real estate funds were fined or settled with the SEC. That never happened. There's no SEC settlement, no fine, no enforcement action against Cardone Capital. Getting that wrong actually lets the manager off easy — because the true regulatory record is more specific, and it just advanced.
What actually happened
In 2018, SEC staff made Cardone strip a projected "~15% annualized return" from a fund's offering circular for lacking a basis. He removed it — then kept promoting the same 15% on social media. An investor sued over exactly that. In Pino v. Cardone Capital, the Ninth Circuit revived the case twice, and this year it crossed a threshold most headlines missed: a federal court certified the class in 2026 (anyone who bought into Cardone Equity Fund V or VI through their public offerings), and a jury trial is now set for March 9, 2027. No verdict yet — the allegations are unproven and Cardone denies them — but "dormant lawsuit" is no longer accurate.
Why it matters to you
The marketing says "double your money." The audited SEC filings say something else: Cardone REIT I lost $9.75M in FY2024 and another $5.26M in FY2025, with the accumulated deficit widening to $33.9M. A narrowing loss is still a loss — and it's the number the "15%" pitch never mentions.
When a fund's own filings contradict its ads, you don't need to guess who's right. Read the 1-K, not the Instagram reel.
Read the full forensic Cardone Capital review →
— Jorge