Multiple real estate investment firms and individuals in Florida are currently under investigation for alleged deceptive practices, fraud, and theft, impacting numerous investors. Authorities are examining claims that funds intended for property investments were misappropriated, leading to significant financial losses for those involved.
Key Takeaways
- A Tampa-based real estate firm, RAD Diversified REIT Inc., and its owners are being investigated by the Florida Attorney General’s Office for potential violations of deceptive trade practices.
- Investors have reported being unable to retrieve returns or their initial investments.
- One property investor has filed a lawsuit alleging a Florida real estate broker misappropriated over $121 million.
- A Boca Raton man was arrested for a real estate scam that defrauded 16 investors out of more than $410,000.
Investigation into RAD Diversified REIT Inc.
The Florida Attorney General’s Office has issued subpoenas to RAD Diversified REIT Inc., along with its owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation centers on allegations that the company, which promotes real estate investments through seminars and social media, may be operating as a Ponzi scheme. Complaints suggest that investor funds are being pocketed instead of being used for property acquisitions as advertised. The Attorney General’s office is seeking documents to determine if the company’s real estate holdings match the value of customer investments.
Allegations of Major Theft
In a separate case, a Florida property investor has accused a real estate broker of misappropriating more than $121 million. The lawsuit claims the broker used her managerial position within several companies to divert investment funds into her personal accounts. This case highlights the significant sums that can be involved in alleged fraudulent real estate schemes.
Boca Raton Real Estate Scam
Authorities have arrested a Boca Raton man, Felipe Souza, in connection with a "bait and switch" scheme that defrauded 16 investors of over $410,000. Souza allegedly promised high returns on non-existent real estate deals. Investigations revealed that funds collected from investors were not used for legitimate business purposes, with a significant portion transferred to an associate, Michael Campbell, who also lacked the necessary licenses to operate in real estate or securities. Both Souza and Campbell reportedly used the funds for personal expenses.
Broader Concerns in Florida Real Estate
These investigations point to a concerning trend of fraudulent activities within Florida’s real estate investment sector. The involvement of individuals acting as social media influencers and the use of complex schemes to solicit funds raise alarms for potential investors. Regulatory bodies are working to gather evidence and ensure that individuals are protected from deceptive practices and outright fraud.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.
- Property Investor Says Florida Real Estate Broker Stole $121M, Law360.
- Boca Raton man nabbed for $410K real estate scam, duping 16 investors, WPEC.
- Plantation medical office tied to Wells Real Estate Investment, Janalie Joseph Ponzi scheme in foreclosure
auction, The Business Journals.