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.
- Investors have reported being unable to collect returns or retrieve their initial investments.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
Investigation Details
The investigation was prompted by multiple complaints from investors who claim they are unable to recover their funds or receive promised returns from RAD Diversified. Attorney General Uthmeier stated that the office has received complaints suggesting that cash intended for property purchases is being pocketed instead. "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," Uthmeier said in a news release.
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 online presence as social media influencers, promoting seminars that encourage investments in Florida real estate through their company and associated entities. 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 amount invested by its customers.
Scope of Investigation
Officials are seeking 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 investigation is being handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn.
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.