Florida Attorney General James Uthmeier’s office is investigating Tampa-based RAD Diversified REIT Inc. and its owners, Brandon "Dutch" Mendenhall and Amy Vaughn, for alleged deceptive practices. Subpoenas have been issued as the investigation probes claims that investor funds were misappropriated instead of being used for real estate investments as advertised. The firm and its owners are accused of potentially violating the state’s Deceptive and Unfair Trade Practices Act.
Key Takeaways
- Tampa real estate investment firm RAD Diversified REIT Inc. is under investigation.
- Owners Brandon "Dutch" Mendenhall and Amy Vaughn are specifically targeted.
- Allegations include deceptive practices and a potential Ponzi scheme.
- Investors report being unable to retrieve their funds or returns.
- The Attorney General’s office has issued subpoenas for company documents.
Investigation Details
The Attorney General’s office has received multiple complaints from investors who claim they are unable to access their returns or recover their initial investments from RAD Diversified REIT Inc. Attorney General Uthmeier stated that the investigation is looking into whether the company is pocketing cash instead of purchasing properties as promised, suggesting the operation may be a Ponzi scheme.
Subpoenas Issued
Subpoenas have been served to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon "Dutch" Mendenhall and Amy Vaughn. They are required to provide relevant documents to the prosecutors by July 18. The investigation aims to gather evidence regarding communications with customers, marketing materials, financial records, and any customer complaints filed with the company. The goal is to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Social Media Influence and Investment Model
Mendenhall and Vaughn are known for their presence on social media and as influencers who promote seminars encouraging investments in Florida real estate through their company. Their investment model reportedly targets Floridians who may not have sufficient capital to purchase property independently, pooling investor funds for real estate ventures. The Attorney General’s office is scrutinizing these promotional activities alongside the company’s financial dealings.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.
- Florida AG probes Tampa real estate firm RAD over Ponzi scheme claims, The Business Journals.