Please see the recent email I sent to Rad
Dutch,
After careful consideration, I have decided that a direct conversation with you would no longer be meaningful. Your recent Zoom call, which was meant to address investor concerns, only reinforced my belief that transparency remains a critical issue within Rad Diversified. Despite multiple investors voicing similar concerns, you were still unable to explain the distribution structure, the risks involved, or how new investors impact existing returns.
Previously, I made it clear to Gretchen that communication is key to maintaining trust. The Memorandum of Understanding (MOU) explicitly states this in Sections A and D of the good faith agreement, yet Rad is failing to uphold its own commitments.
Rad Diversified continues to raise capital while withholding financial information, investor distributions, and even basic transparency. I am no longer willing to wait.
This is not about an emergency distribution—it is about protecting my investment because I believe it is being mismanaged. I am not a legal expert, but I can recognize right from wrong. Given Rad’s ongoing lack of accountability, refusal to provide financial transparency, and continued capital raises despite unresolved investor concerns, this has all the red flags of investment fraud or a Ponzi scheme. I believe it is in my best interest to escalate this matter to regulatory agencies unless I receive a full return of the $315,000 I invested.
Gretchen previously stated in an email that these are long-term investments, but that does not justify withholding financials or avoiding accountability. A long-term investment does not mean an indefinite lack of communication with investors.
Resolution Proposal
A full return of my capital investment, including all MOU-related fees.
To summarize:
- My Foothills Land, Rad REIT, and Rad America investments are valued at $315,000 based on the latest available data.
- This means Rad keeps 1% of both the Wholesale and Cattle House investments and retains my Inner Circle fee.
- In effect, Rad made $175,000 in profits on my capital while I received nothing in return.
Despite my deep concerns about Rad’s business practices, I am willing to take a loss just to walk away. I am also forgoing all interest payments I have made on these investments.
If Rad truly believes in its own investment model, this should be an easy decision. Failing to return my investment only raises further red flags.
I have waited over a year without receiving a single distribution or any meaningful financial transparency.
Reasons Supporting My Position
1. Ongoing Communication Failures & Investor Censorship
- My questions have been ignored, misdirected, or met with vague responses.
- Investor questions on Zoom calls are censored, selectively answered, or dismissed entirely.
- A specific example: During a Zoom call, I asked Dory a direct question, but Gretchen intervened and said she would address it privately.
- Despite raising these concerns in October, nothing has changed.
- This is not transparency—this is narrative control.
Furthermore, reports of unpaid vendors, negative investor experiences, and ongoing lawsuits only deepen my distrust.
2. Investment-Specific Concerns
A. Foothills Deal – Lack of Business Plan & Risk of Dilution
- How it was sold to investors:
- Promised 8x-15x returns in 3-4 years.
- Purchase price was $1,430,000 with $500,000 set aside for planning.
- Concerns:
- I was not told this was a phased project or that future investors would dilute my returns.
- If new investors enter the project, how is profit distribution determined?
- If Rad values the land at $10M but raises $5M from new investors, why not secure a loan instead?
B. Auction House – Promised Cash Flow, No Returns
- How it was sold:
- A cash-flowing business with $634,000 in operating income and a total income potential of $800,000+.
- Concerns:
- RAD projected $317,000 in profit within six months, yet the business reported a $40,000 loss.
- If profits existed, why did investors receive nothing?
C. Wholesale Business – Contradictory Statements on Projections & Missing Funds
- Concerns:
- Investors contributed $10M, yet startup costs were only $6M. Where is the remaining capital?
- Key Questions:
- If projections were on target, what changed?
- Where is the financial breakdown supporting this sudden two-year delay?
D. REIT Investment – Delayed Reappraisal & Withheld Financials
- Concerns:
- Distributions froze within two months of my investment.
- The reappraisal, promised in 2024, has never been completed.
- Key Questions:
- Why was investor money accepted when a freeze was imminent?
The Memorandum of Understanding (MOU) Is No Longer Viable
At the time of joining the Inner Circle, I was led to believe this was a select group of 300 top investors, a group committed to transparency, partnership, and shared success.
Yet, despite escalating my concerns from Frank to Gretchen to you, Dutch, I have been met with avoidance, vague responses, or outright silence.
How can the MOU function moving forward when:
- Investor questions are ignored.
- Financials are withheld.
- Investment structures are unclear and possibly diluted.
- Concerns about business practices are met with misdirection instead of resolution.
You continue to invite me to Inner Circle retreats, yet you refuse to acknowledge my legitimate concerns. I can no longer participate in a partnership built on broken promises and lack of transparency.
Final Demand & Next Steps
I have given Rad more than enough time to work toward a fair resolution. Since fall of 2024, I have tried in good faith to address my concerns through multiple avenues, escalating my requests through Frank, Gretchen, and even to you directly. Despite my patience and repeated efforts, Rad has failed to provide transparency, resolve key concerns, or offer a reasonable path forward.
At this point, I am formally demanding a full return of my $315,000 investment.
You have until March 29, 2025, at 5:00 PM EST to confirm that my funds will be returned in full. If I do not receive a formal commitment to a full return of capital by this deadline, I will immediately escalate my actions, including but not limited to:
- Filing formal complaints with the SEC, FBI, and state regulatory agencies.
- Securing legal representation to pursue recovery through litigation.
- Publicly sharing my experience with high-profile investors and media outlets.
I have been more than reasonable in my attempts to resolve this through mutual cooperation. I have given Rad every opportunity to make this right. Now, I am demanding action.
If you fail to meet this deadline, I will proceed with full legal and regulatory escalation without further discussion.
This is my final attempt to settle this matter civilly.
