A wave of alleged real estate investment fraud is sweeping across Florida, with multiple schemes collapsing and leaving investors facing significant financial losses. Investigations and lawsuits are mounting against several firms and individuals accused of deceptive practices, promising high returns on real estate ventures that appear to have vanished, along with millions in investor funds.
Key Takeaways
- Multiple Florida real estate investment firms are under investigation for alleged Ponzi schemes and deceptive practices.
- Investors report millions of dollars missing, with claims of misappropriated funds and non-existent deals.
- State authorities, including the Attorney General’s office, have launched probes and issued subpoenas.
- Individuals involved are accused of using social media to promote fraudulent investment opportunities.
RAD Diversified REIT Inc. Under Scrutiny
A Tampa-based real estate investment firm, RAD Diversified REIT Inc., and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are currently under investigation by Florida Attorney General James Uthmeier’s Office. The investigation centers on allegations of violating the state’s Deceptive and Unfair Trade Practices Act. Subpoenas have been issued for the company and its owners, who are known for promoting investment seminars and using social media to attract investors, particularly those with limited capital for direct property ownership.
The Attorney General’s office has received numerous complaints from investors who claim they are unable to retrieve their returns or principal investments. Authorities are examining whether the company’s real estate holdings match the value of the funds invested by customers. Evidence sought includes communications with customers, marketing materials, and financial records, as investigators suspect a potential Ponzi scheme.
Boca Raton Man Accused of $410K Real Estate Scam
In a separate case, a Boca Raton man, Felipe Souza, has been arrested for allegedly defrauding 16 investors out of more than $410,000 through a "bait and switch" scheme involving non-existent real estate deals. The Florida Office of Financial Regulation (OFR), following complaints initially received by the U.S. Securities and Exchange Commission (SEC), investigated Souza’s business, FAS Creative Concepts LLC. Investors were promised exorbitant returns, ranging from 200% to 338%, with a 100% money-back guarantee.
Investigators found that instead of investing the funds as promised, Souza transferred a significant portion to Michael Campbell, who was presented as a successful businessman. Bank records indicate that neither Souza nor Campbell were licensed to sell securities or real estate in Florida. The funds were reportedly used for personal expenses by both individuals, leaving a substantial outstanding balance to investors.
Broader Implications and Investor Warnings
These cases highlight a growing concern over fraudulent investment schemes within Florida’s booming real estate market. The involvement of social media influencers and the targeting of individuals seeking accessible investment opportunities underscore the need for increased vigilance. Authorities are urging potential investors to conduct thorough due diligence, verify licenses, and be wary of promises that seem too good to be true. The ongoing investigations and lawsuits aim to recover lost funds and hold those responsible accountable for their alleged deceptive practices.
Sources
- Property Investor Says Florida Real Estate Broker Stole $121M, Law360.
- 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.
- Boca Raton man nabbed for $410K real estate scam, duping 16 investors, WPEC.