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 owners Brandon “Dutch” Mendenhall and Amy Vaughn, who have gained notoriety as social media influencers promoting real estate investment seminars.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for alleged deceptive practices.
- Subpoenas have been issued, demanding documents and information by July 18.
- The investigation stems from multiple investor complaints regarding unrecoverable funds and unfulfilled investment promises.
Investigation Details
Attorney General Uthmeier’s office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation is focusing on allegations that the firm may be pocketing investor funds instead of using them to purchase properties as advertised. Uthmeier stated, "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."
Investor Complaints and Subpoena Scope
The Attorney General’s office has received numerous complaints from investors in RAD Diversified. These investors report being unable to collect promised returns or retrieve their initial investments. The subpoenas aim to gather crucial information to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers. The office is seeking evidence including:
- Communications between the company and its customers.
- Documents shared with investors.
- Internal company procedures and complaint records.
- Marketing materials.
- Banking records.
Mendenhall and Vaughn have been actively promoting their investment fund through videos and social media, targeting Floridians who may lack the capital to purchase real estate outright. The investigation is being handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn. The owners and the company have until July 18 to comply with the subpoenas.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.