The Florida Attorney General’s Office is investigating Tampa-based RAD Diversified REIT Inc. and its owners, Brandon "Dutch" Mendenhall and Amy Vaughn, for alleged deceptive practices and potential violations of state laws. The firm, which uses social media to promote real estate investments, faces accusations of pocketing investor funds instead of acquiring properties as advertised, with some investors reporting an inability to retrieve their returns or initial investments.
Key Takeaways
- Florida Attorney General James Uthmeier is investigating RAD Diversified REIT Inc. for potential deceptive practices.
- Owners Brandon "Dutch" Mendenhall and Amy Vaughn are specifically named in the investigation.
- The investigation is looking into allegations that the firm may be operating a Ponzi scheme.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
- Multiple investor complaints have been filed, citing issues with retrieving funds and returns.
Investigation Details
Attorney General James Uthmeier’s office has launched a probe into RAD Diversified REIT Inc., a Tampa real estate investment firm, and its principals, Brandon "Dutch" Mendenhall and Amy Vaughn. The investigation centers on potential violations of Florida’s Deceptive and Unfair Trade Practices Act and other related laws. Subpoenas have been issued to the company and its owners, demanding the production of various documents by July 18. The Attorney General’s office has received numerous complaints from investors who claim they are unable to recover their invested capital or receive promised returns.
Social Media Influence and Allegations
Mendenhall and Vaughn have gained a significant following as internet and social media influencers, promoting seminars that encourage investments in Florida real estate through RAD Diversified and its associated entities. The Attorney General’s office stated that their investigation is prompted by complaints suggesting that the duo might be misappropriating investor funds instead of using them for property acquisitions as advertised. This has led to suspicions of a Ponzi scheme, with the office emphasizing its commitment to protecting Floridians from fraudulent activities.
Scope of the Investigation
The investigation aims to ascertain whether the company’s real estate holdings are equivalent in value to the total amount invested by its customers. The subpoenas seek to gather evidence, including communications between the company and its clients, marketing materials, financial records, and any complaints lodged against the firm. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
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.