A former Miss Canada sued Grant Cardone alleging defamation in a case that ballooned from an eviction tiff to a claim of $500 million in damages.
Chealse Sophia Howell accused the crowd-funding multifamily syndicator and his Aventura-based firm Cardone Capital of engaging in a nasty online smear campaign against her, in a complaint filed in Miami-Dade Circuit Court last month.
Cardone allegedly told his 10 million-plus social media followers that Howell was involved “in a clandestine or illegal operation in the Middle East.” Cardone allegedly implied her talent agency is “essentially masquerading as a dating site for Americans and Canadians being peddled to the Middle East,” the complaint states.
Howell, from Lindsay, Ontario, owns a talent agency and a skincare company. She is seeking $500 million in damages, the complaint states.
The former beauty pageant contestant is locked in a bitter eviction lawsuit with Cardone and his wife, Elena.
Their landlord entity sued Howell after she rented a Sunny Isles Beach Condo from them in 2023. Howell wants the Cardones to return $150,000 in security deposits in that case. Howell’s lawyer Douglas Jeffrey did not respond to requests for comment.
Cardone accused Howell of “intentionally and maliciously” causing millions of dollars in property damage.
“Those who are as visible as I am become targets of those looking for quick scores,” Cardone told The Real Deal.
Cardone has over 10 million followers across his social media platforms, where he gives real estate and financial advice and flaunts his luxurious lifestyle.
Cardone Capital has more than $5 billion in real estate assets across the country, primarily multifamily projects. The firm recently began investing in bitcoin. Cardone Capital sells small percentages in its real estate and cryptocurrency holdings to small investors via crowdfunding.
Eviction over fire sprinklers
Howell entered into a one-year lease for the Cardones’ 33th floor unit at the Regalia Residences at 19575 Collins Avenue in November 2023 at $50,000 a month, court filings show.
She was required to pay up front a $50,000 landlord security deposit, $100,000 for two months rent and a $5,000 security deposit to the building’s condo association.
The landlord-tenant relationship crumbled a month later when Howell moved in.
The Cardones accuse Howell of damaging sprinkler heads in the unit with a “heavy object” that caused water to pour into the condo down to the lobby, according to their eviction suit. The flooding damaged the Cardones’ unit and 30 others below it, their complaint alleges.
The same day, the condo association allegedly banned Howell from the building, and the Cardones served her with an eviction notice requiring her to leave by Jan. 3, 2024.
In a counterclaim, Howell denied damaging the sprinkler system, as well as accusations that she destroyed security cameras in common areas. Howell claimed she was asleep when “she was awakened by a loud sound,” her response states. She walked into the kitchen when she saw water pouring from the ceiling and allegedly had no idea what caused the sprinklers to malfunction.
Elena Cardone, a security guard, a building representative and police showed up to the unit immediately after the sprinkler incident. Elena Cardone allegedly informed everyone present that Howell “was no longer allowed on the premises” and that she had “30 minutes to gather her belongings” and leave, according to Howell’s lawsuit.
“Weird vibe”
In the defamation lawsuit, Howell alleged that an “eerie, weird vibe surrounded” the Regalia Residences condo unit, and that “strange, cultlike individuals surrounded” the Cardones.
A text thread between Howell and Elena Cardone allegedly shows how their relationship unraveled. In a text sent on Jan. 26, 2024, and included in Howell’s complaint, Elena Cardone allegedly said, “My husband’s gonna make you famous.”
The same day, Cardone allegedly posted two photos on his Facebook page of Howell wearing a black ski mask, a bikini top and black sweatpants.
In the post, which is still up, Cardone allegedly wrote that he was looking for Howell’s phone number and her current location, as well as any information about her and any of her boyfriends.
He allegedly wrote that she owns a company “possibly [a] dating site or model agency, owned by a middle eastern or Egyptian dude.” Cardone allegedly offered “rewards for any details that lead to her whereabouts.”
Cardone falsely attempted to align Howell with someone she doesn’t know and doesn’t have any affiliation with, according to the complaint, which says she doesn’t own a dating agency or website. Cardone allegedly knew the ski mask images were old marketing photographs, but he still posted them “to deceive his many social media followers,” the lawsuit states.
Cardone allegedly posted similarly “defamatory statements” on LinkedIn, X and Instagram to make it appear that Howell was engaged in “sex crimes, including but not limited to engaging in prostitution,” the lawsuit states.
Howell suffered ridicule and loss of business partnerships from the posts, her lawsuit alleges. Besides that, Cardone’s fans have harassed her by posting photos of her residence and some of her personal information, she alleges.
Cardone said Howell’s defamation lawsuit is just a deflection from the eviction case.
Her “unexplainable behavior and destruction of property is indefensible,” he said.