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 allegations that the company and its owners may be pocketing investor funds instead of acquiring properties as advertised, with concerns of a possible Ponzi scheme.
Key Takeaways
- Florida Attorney General James Uthmeier’s Office is investigating RAD Diversified REIT Inc. and its owners.
- The investigation stems from multiple investor complaints alleging inability to retrieve returns or principal.
- Authorities are examining whether the company’s assets match the value of customer investments.
- The firm and its owners have been issued subpoenas and must respond by July 18.
Investigation Details
Attorney General Uthmeier has issued subpoenas for RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are known for their online presence and social media influence, where they promote seminars encouraging investments in Florida real estate through the company. The Attorney General’s office has received numerous complaints from investors who claim they are unable to collect promised returns or recover their initial investments.
Allegations of Deceptive Practices
“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 stated in a news release. He 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.”
The investigation aims to gather information regarding these complaints and to determine if the company possesses real estate assets equivalent to the total amount invested by its customers. The Attorney General’s office is seeking various documents, including communications between the company and its clients, marketing materials, financial records, and any complaints filed against the company.
Next Steps
RAD Diversified REIT Inc., Mendenhall, and Vaughn have until July 18 to comply with the subpoenas by providing the requested documentation to the prosecutors handling the case. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the investigation.
Sources
- Tampa real estate investment firm under investigation for
potential deceptive practicesDemocratic
lawmakers are hosting a webinar for homeowners. Image via Adobe., Florida Politics. - Florida AG probes Tampa real estate firm RAD over Ponzi scheme claims, The Business Journals.