A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by Florida Attorney General James Uthmeier’s Office for potential violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on allegations that the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, may be operating a Ponzi scheme.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for deceptive practices.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are specifically named in the investigation.
- Allegations suggest a Ponzi scheme where investor funds may not be used for property acquisition as advertised.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
- Multiple investors have reportedly filed complaints, citing inability to retrieve returns or principal investments.
Investigation Details
The investigation was prompted by numerous complaints from investors who claim they are unable to collect returns or recover their initial investments from RAD Diversified. Attorney General Uthmeier stated in a news release that the office has received complaints indicating that "a popular internet duo selling real estate investment services through their fund is pocketing cash instead of buying properties as advertised." He further commented, "This appears to be a Ponzi scheme, and with several individuals claiming they’ve been exploited, we are investigating to ensure Floridians are not being deceived by greedy fraudsters."
Subpoenas Issued
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are known for their social media presence and seminars that promote investments in Florida real estate through the company. The subpoenas require the company and its owners to provide requested documents to prosecutors by July 18. The investigation aims to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Scope of Investigation
The Attorney General’s Office is seeking a wide range of evidence, including communications between the company and its customers, documents shared with investors, internal company procedures, marketing materials, banking records, and any complaints filed against the company. The focus is on gathering information to ascertain whether the company has engaged in deceptive practices and if investor funds have been misappropriated.
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.