A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by Florida Attorney General James Uthmeier’s Office for potential violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on allegations that the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, may be misappropriating investor funds instead of using them for real estate purchases as advertised.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for deceptive practices.
- The Attorney General’s Office has received multiple investor complaints.
- Subpoenas have been issued for company documents and communications.
Investigation Details
The investigation was prompted by numerous complaints from investors who claim they are unable to retrieve their returns or principal investments from RAD Diversified. Attorney General Uthmeier stated that the office has received information suggesting that the company might be operating a Ponzi scheme, where cash from new investors is used to pay off earlier investors, rather than being invested in actual properties.
Subpoenas Issued
Subpoenas have been 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 promote seminars and encourage investments in Florida real estate through their company. The subpoenas demand that the company and its owners provide documents by July 18th, including communications with customers, marketing materials, banking records, and details of company procedures. The investigation aims to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Protecting Floridians
Attorney General Uthmeier emphasized the office’s commitment to protecting Floridians from fraudulent activities. The investigation is being handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn. The office is actively seeking evidence to ascertain the truth behind the complaints and ensure that investors are not being exploited by what appears to be a deceptive operation.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.