A Tampa-based real estate investment firm, RAD Diversified REIT Inc., and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are currently under investigation by Florida Attorney General James Uthmeier’s Office. The probe centers on allegations of violating the state’s Deceptive and Unfair Trade Practices Act, with concerns that investor funds may not be used for property purchases as advertised.
Key Takeaways
- RAD Diversified REIT Inc. and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are being investigated.
- The investigation stems from multiple investor complaints alleging inability to retrieve returns or principal.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
- Attorney General Uthmeier suspects a potential Ponzi scheme and greedy fraudsters.
Investigation Details
The Attorney General’s Office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Mendenhall and Vaughn. The investigation is focusing on the duo, who have gained prominence as social media influencers promoting real estate investment seminars. These seminars reportedly encourage investments in Florida real estate through the company and its associated entities.
Attorney General Uthmeier stated in a news release, “Our office has received complaints that a popular internet duo selling real estate investment services through their fund is pocketing cash instead of buying properties as advertised.” He further added, “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 Subpoenas
Multiple complaints have been lodged with the Attorney General’s Office by investors in RAD Diversified. These investors claim they are unable to collect promised returns or recover their initial investments. The investigation aims to gather information to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
The subpoenas seek comprehensive documentation, including:
- Communications between the company and its customers.
- Documents shared with investors.
- Internal company complaints and procedures.
- Marketing materials.
- Banking records.
Mendenhall and Vaughn are expected to respond to the subpoenas by July 18, providing the requested documents to the prosecutors handling the case. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the investigation.