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 and other laws, following multiple investor complaints.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for potential deceptive practices.
- The Attorney General’s office has issued subpoenas for company documents and communications.
- Investors have reported difficulties in collecting returns or retrieving their invested funds.
- The investigation is examining whether the company’s real estate holdings match the value of investor funds.
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. Mendenhall and Vaughn are known for promoting real estate investment seminars and leveraging social media to encourage investments in Florida properties through their company. Attorney General Uthmeier stated in a news release that the office has received complaints suggesting that funds intended for property purchases may have been misappropriated, potentially indicating a Ponzi scheme.
Investor Complaints
Multiple investors have reportedly filed complaints with the Attorney General’s office, claiming they are unable to recover their invested capital or receive promised returns from RAD Diversified. The investigation aims to verify these claims and determine if the company’s real estate assets are commensurate with the total amount invested by its customers.
Subpoenaed Information
RAD Diversified and its owners have until July 18 to comply with the subpoenas. The investigation seeks a range of documents, including communications between the company and its clients, marketing materials, financial records, company procedures, and any complaints lodged against the firm. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.