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 a following as social media influencers promoting real estate investment seminars.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are facing an investigation for alleged deceptive practices.
- Subpoenas have been issued, demanding documents and responses by July 18.
- The Attorney General’s office has received multiple investor complaints regarding inability to retrieve funds or returns.
- The investigation aims to determine if the company’s assets match investor contributions.
Investigation Details
Attorney General James Uthmeier announced that his 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 for real estate purchases as advertised. Uthmeier stated in a news release, "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 difficulties in collecting promised returns or recovering their initial investments. The subpoenas require Mendenhall, Vaughn, and the company to provide documents to prosecutors by July 18. The investigation seeks to ascertain whether the company possesses real estate assets equivalent in value to the total amount invested by its customers. Evidence being sought includes communications with customers, marketing materials, company procedures, banking records, and any filed complaints.
Social Media Influence and Investment Model
Mendenhall and Vaughn are known for their active presence on social media, where they promote their investment fund. They describe the fund as a vehicle designed to pool money from investors, particularly targeting Floridians who may not have sufficient capital to purchase property outright. The investigation aims to gather comprehensive information regarding these practices and ensure transparency and legality in real estate investment offerings.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.