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 the company’s owners, Brandon “Dutch” Mendenhall and Amy Vaughn, who are also prominent social media influencers promoting real estate investment seminars.
Key Takeaways
- RAD Diversified REIT Inc. and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are being investigated for deceptive practices.
- The Attorney General’s Office has issued subpoenas for company documents and communications.
- Investors have reported being unable to collect returns or retrieve their invested funds.
- The investigation is exploring whether the company’s real estate holdings match the value of investor contributions.
Investigation Details
Attorney General James Uthmeier announced that his office has received multiple complaints from investors in RAD Diversified. These investors claim they are unable to access their returns or recover their initial 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 operation might resemble a Ponzi scheme, emphasizing the office’s commitment to protecting Floridians from fraudulent activities.
Subpoenas Issued
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and its owners, Mendenhall and Vaughn. They are required to provide requested documents to the Attorney General’s Office by July 18. The investigation, handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn, aims to gather comprehensive information regarding the company’s operations and investment practices. The focus is on determining if the company’s real estate assets are equivalent in value to the total amount invested by its customers.
Marketing and Investment Strategy
Mendenhall and Vaughn actively promote their investment fund through various online platforms and social media. Their strategy involves pooling investor funds to facilitate real estate investments, particularly targeting Floridians who may lack the capital to purchase property independently. The Attorney General’s Office is seeking evidence including customer communications, shared documents, internal procedures, marketing materials, and financial records to assess the legitimacy of these practices.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.