Tommy Dobczyk discusses RAD Diversified, a real estate investment trust facing an SEC halt on fund disbursements and lawsuits over mishandled investor funds. The company's share price collapsed to under $0.10 from prior highs, with a federal suit allegedly filed by Buck Sexton.
Questions this video answers
$250 million
RADD
Trading for less than $0.10 per share (under 10 cents).
Approximately $250 million (raised when shares reached $25).
A federal lawsuit by Buck Sexton alleging he was defrauded of more than $100,000.
Chapters
Rather diversified. We went to their conference, and then I went and looked them up last night to see where they were located out here at campus so we could go stop by the office and visit with them. And they had a, like, a 2.3 star rating with over a thousand, like, one stars. That was saying not good. They stole people's money.
It's brutal.
And so it was a real estate investment trust, and it was a pretty decent. Seemed like a pretty decent business plan where they started the real estate investment trust. They used the money from the trust to go and do fix and flips and. And buying holds. And for whatever reason, what I was reading was that the SEC put a hold on dispersing any funds, and, like, they're literally stuck. It was $250 million.
Wow.
So, like, you could probably go look up their stock price. Ticket price, red R A D D, I think is what they're.
So they're a publicly traded company.
Yeah.
So clearly they did something that's not good.
Like brand stock right now is trading for less than 10 cents. They're planning in 2022. They had an 8% distribution with a squared. They say their current share price is 25.04. So $25 a share. But they quit reporting their share prices in 2019. When they launched, they were $10 a share, and they went up to 25. So that's where they got the 250, 000. 250. They raised $250 million with doing that. So they had a million characters. This is a full. This is a whole. This is a whole law group who's suing them. So. Yikes. It says, Meyer Wilson and warning cannot assist victims of Rad Diversified. They really messed up people. And so part of me is like, I want to reach out to him and say, hey, sell me all your land. Like, we could bail these guys out by buying all their. All their stuff.
Right, Right.
So, yeah, again, like, this is important for the podcast because of the fact that there's. There's all these issues that you can get into as a brokerage firm.
Right.
You know, and when we're talking about protecting investors and stuff like that, this is the type of stuff we're trying to talk about. But basically, Buck Sexton filed a federal lawsuit against Brad Diversified, alleging they defrauded him of more than $100,000.
