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 the company’s 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 facing scrutiny for alleged deceptive practices.
- The Attorney General’s Office has issued subpoenas for company documents and communications.
- Investors have reported difficulties in collecting returns or retrieving their invested funds.
- The investigation is exploring whether the company’s assets match the value of investor contributions.
Investigation Details
Attorney General Uthmeier’s office has received multiple complaints from investors who claim they are unable to recover their money or receive promised returns from RAD Diversified. The investigation aims to determine if the company is engaging in deceptive practices, potentially operating as a Ponzi scheme. Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Mendenhall and Vaughn, requiring them to provide relevant documents by July 18.
Allegations and Scope of Inquiry
The investigation focuses on Mendenhall and Vaughn’s role in promoting investment opportunities through seminars and social media. These promotions allegedly encourage Floridians, particularly those who may not have sufficient funds for outright property purchase, to invest in a fund designed to pool capital for real estate acquisitions. The Attorney General’s office is seeking to verify if the company’s real estate holdings are equivalent in value to the total amount invested by customers. Evidence being sought includes communications with customers, marketing materials, financial records, and internal company procedures.
Legal Proceedings
Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are leading the investigation. The office is committed to uncovering the truth and protecting Floridians from potential fraud. The subpoenas are a critical step in gathering the necessary information to assess the validity of the complaints and determine the extent of any wrongdoing.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.