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 acquisition as advertised.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for potential deceptive practices.
- The Attorney General’s office has received multiple investor complaints.
- Subpoenas have been issued, demanding documents by July 18.
Investigation Details
Attorney General James Uthmeier announced that his office has received numerous complaints from individuals who invested in RAD Diversified. These investors claim they are unable to retrieve their returns or principal investments. 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 suggested that the situation "appears to be a Ponzi scheme."
Subpoenas Issued
Subpoenas have been formally issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are known for their online presence, where they act as social media influencers promoting seminars focused on Florida real estate investments through their company. The subpoenas require the company and its owners to provide requested documents to prosecutors by July 18. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
Focus of the Investigation
The investigation aims to determine if the company’s real estate holdings are equivalent in value to the total amount invested by RAD Diversified REIT customers. The Attorney General’s office is seeking various forms of evidence, including:
- Communications between the company and its customers.
- Documents shared with investors.
- Records of complaints filed with the company.
- Outlines of company procedures.
- Marketing materials.
- Banking records.
The probe is intended to gather comprehensive information regarding the complaints and to ensure that Floridians are protected from potential fraudulent activities.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.