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 violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on the company’s owners, Brandon “Dutch” Mendenhall and Amy Vaughn, who have gained notoriety as social media influencers promoting real estate investment seminars.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for potential deceptive practices.
- Subpoenas have been issued, demanding documents and information from the company and its principals.
- The investigation stems from multiple investor complaints alleging inability to retrieve funds or returns.
- The Attorney General’s office is exploring the possibility of a Ponzi scheme.
Investigation Details
Attorney General James Uthmeier announced that his office has received numerous complaints from investors in RAD Diversified. These investors claim they are unable to collect promised returns or recover their initial investments. Uthmeier stated, "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 expressed concern that "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."
Subpoenas Issued
Subpoenas have been formally issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. They are required to provide requested documents to prosecutors by July 18. The investigation aims to ascertain whether the company possesses real estate assets equivalent in value to the total amount invested by its customers. The Attorney General’s office is seeking a wide range of evidence, including communications with customers, marketing materials, financial records, and internal company procedures.
Social Media Influence and Investment Model
Mendenhall and Vaughn have actively used social media platforms and videos to promote their investment fund. They describe the fund as a mechanism to pool investor capital for real estate acquisitions, specifically targeting Floridians who may lack the capital to purchase property independently. The investigation seeks to uncover the truth behind these claims and ensure investor protection.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.