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 potential links to a Ponzi scheme.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for deceptive practices.
- Subpoenas have been issued, demanding documents and responses by July 18.
- Investors have reported difficulties in collecting returns or retrieving their invested funds.
- The investigation aims to determine if the company’s real estate holdings match investor contributions.
Investigation Details
The Attorney General’s office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation is focusing on Mendenhall and Vaughn, who have gained prominence as social media influencers promoting seminars that encourage investments in Florida real estate through their company and associated entities. Attorney General Uthmeier stated that his office has received complaints suggesting that the funds collected from investors are not being used to purchase properties as advertised, but are instead being "pocketed." He further indicated that the situation appears to resemble a Ponzi scheme, prompting a thorough investigation to protect Floridians from potential fraud.
Investor Complaints and Subpoena Scope
Multiple investors in RAD Diversified have reportedly filed complaints, stating they are unable to access their returns or recover their initial investments. The investigation and the issued subpoenas are designed to gather comprehensive information regarding these complaints and to ascertain whether the company’s real estate assets are equivalent in value to the total amount invested by its customers. The Attorney General’s office is seeking various forms of evidence, including:
- Communications between the company and its customers.
- Documents provided to customers.
- Records of complaints filed with the company.
- Outlines of the company’s operational procedures.
- Marketing materials used by the firm.
- Banking and financial records.
- Other relevant documentation.
Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case. Mendenhall and Vaughn have until July 18 to comply with the subpoenas and provide the requested documentation to the prosecutors.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.