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 allegations that the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, may be engaging in fraudulent activities, including operating a scheme similar to a Ponzi scheme.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are facing investigation for deceptive practices.
- The Attorney General’s Office has issued subpoenas for company documents and communications.
- Investors have reported difficulties in retrieving returns or their initial investments.
- The investigation aims to determine if the company’s assets match investor contributions.
Investigation Details
Attorney General Uthmeier’s office has received multiple complaints from investors who claim they are unable to collect promised returns or recover their invested funds from RAD Diversified. The investigation is focusing on Mendenhall and Vaughn, who have gained prominence as social media influencers promoting real estate investment seminars. These seminars reportedly encourage investments in Florida real estate through RAD Diversified and its associated subsidiaries, particularly targeting individuals who may not have sufficient capital to purchase property outright.
Subpoenas Issued
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. They are required to provide requested documents to the Attorney General’s office by July 18. The investigation seeks to gather comprehensive information regarding the complaints, including evidence of communications with customers, marketing materials, financial records, and company procedures. A key objective is to ascertain whether the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Allegations of a Ponzi Scheme
Attorney General Uthmeier stated in a news release that the office has received information suggesting that the company might be "pocketing cash instead of buying properties as advertised." He further commented, "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." Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.