A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by the Florida Attorney General’s Office for alleged deceptive practices. Owners Brandon "Dutch" Mendenhall and Amy Vaughn are accused of pocketing investor funds instead of purchasing properties as advertised, with one investor claiming over $121 million was stolen.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for potential violations of deceptive trade laws.
- Owners Brandon Mendenhall and Amy Vaughn are named in subpoenas seeking documents related to investor complaints.
- Investors report being unable to retrieve returns or their initial investments.
- Allegations suggest a Ponzi scheme, with claims of misappropriated funds totaling millions.
Investigation Launched Amid Investor Complaints
The Florida Attorney General’s Office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon "Dutch" Mendenhall and Amy Vaughn. The investigation stems from multiple complaints by investors who claim they cannot access their returns or recover their initial investments. Attorney General James Uthmeier stated that the office received complaints suggesting the company is "pocketing cash instead of buying properties as advertised," and that the situation "appears to be a Ponzi scheme."
Allegations of Misappropriation and Deception
Investors allege that Mendenhall and Vaughn, who also promote investment seminars and utilize social media influence, have diverted funds intended for real estate acquisitions. One prominent investor has filed a lawsuit accusing the firm of misappropriating over $121 million. The investigation aims to determine if the company’s real estate holdings match the value of funds invested by its customers.
Subpoena Details and Ongoing Inquiry
The subpoenas demand documents including communications with customers, marketing materials, banking records, and company procedures. Mendenhall and Vaughn have until July 18 to respond. The Attorney General’s Office is actively seeking evidence to ascertain whether the company has violated Florida’s Deceptive and Unfair Trade Practices Act and other relevant laws. The probe highlights concerns about potential exploitation of Floridians seeking real estate investment opportunities.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.
- Property Investor Says Florida Real Estate Broker Stole $121M, Law360.
- This Florida man, 60, says he lost $1.6 million in an elaborate real estate investment scheme —
fronted by a woman he’d known for over a decade. How to avoid falling for fake investments, Moneywise.