The Florida Attorney General’s Office is investigating Tampa-based RAD Diversified REIT Inc. and its subsidiaries for alleged deceptive practices. Owners Brandon “Dutch” Mendenhall and Amy Vaughn are specifically targeted in the probe, which stems from multiple investor complaints about an inability to retrieve funds or returns.
Key Takeaways
- Florida Attorney General James Uthmeier is investigating RAD Diversified REIT Inc. for potential violations of the state’s Deceptive and Unfair Trade Practices Act.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn, who promote real estate investment seminars, are central to the investigation.
- The investigation was prompted by numerous complaints from investors unable to access their invested funds or expected returns.
- Attorney General Uthmeier has issued subpoenas for the company and its owners, suspecting a potential Ponzi scheme.
Investigation Details
Attorney General James Uthmeier’s office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation centers on allegations that the company may be violating Florida’s Deceptive and Unfair Trade Practices Act and other relevant laws. Mendenhall and Vaughn are known for their online presence and seminars that encourage investments in Florida real estate through the company’s funds.
Investor Complaints and Suspected Ponzi Scheme
According to a news release from the Attorney General’s office, multiple complaints have been received from individuals who invested in RAD Diversified. These investors claim they are unable to collect their promised returns or withdraw their initial investments. Attorney General Uthmeier stated, "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 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."
Subpoena and Information Sought
RAD Diversified REIT Inc., Mendenhall, and Vaughn have been given until July 18 to respond to the subpoenas by providing requested documents to the prosecutors. The investigation aims to gather information to determine if the company owns real estate assets equivalent in value to the total amount invested by its customers. The Attorney General’s office is seeking evidence including communications between the company and customers, shared documents, internal procedures, marketing materials, banking records, and any filed complaints.
Company’s Investment Model
Mendenhall and Vaughn promote their investment fund through various videos and social media platforms, describing it as a vehicle to pool investor funds for real estate acquisitions. This model is reportedly targeted at Floridians who may not have sufficient capital to purchase property independently. The investigation will scrutinize whether the company’s operations align with these advertised investment strategies and if investors’ funds are being used as represented.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.
- Florida AG probes Tampa real estate firm RAD over Ponzi scheme claims, The Business Journals.