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 prominence as social media influencers promoting real estate investment seminars.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for potential deceptive practices.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are subjects of the investigation.
- The firm is accused of pocketing investor funds instead of purchasing properties as advertised.
- The investigation is exploring the possibility of a Ponzi scheme.
- Subpoenas have been issued, requiring the company and its owners to provide documents by July 18.
Investigation Details
Attorney General Uthmeier stated that his office has received multiple complaints from investors who claim they are unable to collect returns or retrieve their invested capital from RAD Diversified. "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," Uthmeier said in a news release. He further added, "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 issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. They are required to respond by July 18, providing prosecutors with requested documents. The investigation aims to gather information to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are leading the case.
Focus on Marketing and Investor Complaints
Mendenhall and Vaughn are known for their extensive use of videos and social media to promote their investment fund, which they describe as a vehicle for pooling investor funds for real estate ventures. The program specifically targets Floridians who may not have sufficient funds to purchase property independently. The Attorney General’s office is seeking evidence including communications with customers, shared documents, internal complaints, company procedures, marketing materials, and banking records to thoroughly examine the allegations.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.