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 prominence 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 responses by July 18.
- The investigation stems from multiple investor complaints regarding inability to retrieve returns or principal.
- The Attorney General’s office is examining if the company’s real estate holdings match investor contributions.
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 acquiring properties 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 individuals report being unable to collect promised returns or recover their initial investments. The investigation aims to gather information to determine if the company’s real estate assets are equivalent in value to the total amount invested by its customers.
Information Sought
To facilitate the investigation, the subpoenas are seeking a range of documents and evidence. This includes communications between the company and its customers, documents shared with investors, internal company complaint records, operational procedures, marketing materials, banking records, and other relevant evidence. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case. Mendenhall and Vaughn, along with 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.