Tampa, Florida – A prominent Florida real estate investment firm, RAD Diversified, is currently embroiled in a widening scandal, facing intense scrutiny from state and federal authorities. Investors are reporting significant losses, with tens of millions in assets allegedly missing, prompting investigations into potential deceptive practices and even a suspected Ponzi scheme.
Key Takeaways
- RAD Diversified, co-founded by Brandon "Dutch" Mendenhall and Amy Vaughn, is under investigation by the Florida Attorney General and the SEC.
- Investors claim income distributions have ceased, and their principal investments are unaccounted for, with an estimated $100 million in assets missing.
- The company promoted various investment programs, including a non-traded REIT, Opportunity Zone funds, a crypto fund, and exclusive investment clubs.
- Allegations suggest the firm may have exploited provisions of the JOBS Act, which allows for less stringent disclosure requirements.
The Rise and Fall of RAD Diversified
RAD Diversified positioned itself as a pathway to real estate riches, leveraging digital marketing and live seminars to attract hundreds of investors. The company offered a diverse portfolio of investment opportunities, including a non-traded Real Estate Investment Trust (REIT) focused on single-family homes, Opportunity Zone funds, a cryptocurrency fund, and an exclusive "Inner Circle RAD" club. They also offered loans with promised high yields.
However, the situation began to unravel for investors in early 2023. Brad Carr, who joined RAD as director of strategic initiatives, grew suspicious of the company’s financial claims and resigned after six months. Soon after, investors reported that income distributions from RAD’s funds began to slow and eventually stopped without explanation. Payments to REIT investors were missed, and interest payments on loans went unpaid.
Regulatory Scrutiny Intensifies
By February 2024, the Securities and Exchange Commission (SEC) halted RAD Diversified REIT’s ability to raise new funds. Simultaneously, the company froze investor redemptions. In July 2025, Florida Attorney General James Uthmeier announced subpoenas for RAD Diversified, its subsidiaries, and owners Brandon "Dutch" Mendenhall and Amy Vaughn, citing numerous investor complaints. Uthmeier publicly stated that the situation "appears to be a Ponzi scheme."
RAD Diversified disputed the claims, arguing jurisdictional issues and stating they had already provided over a million pages of documents to the SEC, which was also investigating the firm. Despite these assurances, an investor who served on RAD’s board reported numerous foreclosures within the real estate portfolio and an estimated $100 million in missing assets.
Investor Woes and Legal Battles
Numerous investors have come forward with harrowing accounts. Tom Nagy, who invested approximately $330,000 in joint ventures and loans, has recovered only a fraction of his investment. Lonnie Phillips, who invested around $300,000, reported that properties were sold without his knowledge, and he has not received proceeds from his joint-venture deals.
Jeff Thomas, a former major shareholder, gained access to RAD’s bank accounts as a board member and discovered alarming financial discrepancies, including a significant drop in rent collections and unpaid taxes and insurance. He estimated RAD companies held about $90 million in property against at least $90 million in debt. Thomas was later removed from the board and locked out of accounts.
The company’s ties to accountant Charles Dombek, who has faced legal action from the U.S. Department of Justice regarding certain tax strategies, have further fueled investor fears. Currently, RAD Diversified faces multiple lawsuits, including default judgments totaling millions of dollars, though the ability to collect on these judgments remains uncertain given the alleged depletion of assets.