A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by Florida Attorney General James Uthmeier’s Office for alleged deceptive practices. The probe centers on owners Brandon “Dutch” Mendenhall and Amy Vaughn, who are accused of pocketing investor funds instead of purchasing properties as advertised, potentially operating a Ponzi scheme. The investigation follows multiple complaints from investors unable to retrieve their returns or initial investments.
Key Takeaways
- Tampa-based RAD Diversified REIT Inc. and its owners are being investigated for deceptive practices.
- Allegations include operating a Ponzi scheme and misusing investor funds.
- Subpoenas have been issued for company documents and communications.
- This investigation highlights a broader trend of real estate investment fraud in Florida.
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 aims to determine if the company has violated Florida’s Deceptive and Unfair Trade Practices Act. Mendenhall and Vaughn, who have gained a following as social media influencers promoting real estate investment seminars, are accused of soliciting funds for real estate investments but allegedly diverting them for personal use. The office is seeking evidence, including communications with customers, marketing materials, and financial records, to ascertain if the company’s real estate holdings match the value of investments made by its clients.
Broader Trend of Real Estate Fraud in Florida
The investigation into RAD Diversified REIT Inc. is not an isolated incident in Florida. Recent cases highlight a concerning pattern of real estate investment fraud targeting Floridians. In one instance, 74-year-old Jerald Benjamin Clawson was arrested for an alleged Ponzi-style scheme that defrauded investors of "several million dollars." Clawson, who has a prior history with the Securities and Exchange Commission for similar fraudulent activities, allegedly promised guaranteed returns but used investors’ money for personal expenses. Another case involved Boca Raton resident Felipe Souza, who was arrested for a scheme that defrauded 16 investors of over $410,000. Souza allegedly promised exorbitant returns on non-existent real estate deals, with funds ultimately being used for personal expenses by both Souza and an associate, Michael Campbell, neither of whom were licensed to sell securities or real estate in Florida.