The Florida Attorney General’s Office is investigating Tampa-based real estate investment firm RAD Diversified REIT Inc. and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, for alleged deceptive practices and potential violations of state laws. The probe, initiated following multiple investor complaints, centers on claims that the company may be operating a Ponzi scheme.
Key Takeaways
- Florida Attorney General James Uthmeier’s office is investigating RAD Diversified REIT Inc. for potential deceptive practices.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are specifically named in the investigation.
- The investigation is looking into allegations that the firm is operating a Ponzi scheme, with investors unable to retrieve their returns or initial capital.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
Investigation Details
Attorney General James Uthmeier announced that his office has received numerous complaints from individuals who invested in RAD Diversified. These investors claim they are unable to collect promised returns or recover their initial investments. 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 indicated that the situation appears to be a Ponzi scheme, and the office is committed to protecting Floridians from fraudulent activities.
Subpoenas Issued
Subpoenas have been formally issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are known for their presence as internet and social media influencers, promoting seminars that encourage investments in Florida real estate through their company. The subpoenas require the company and its owners to provide requested documents to prosecutors by July 18. The investigation aims to ascertain whether the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Scope of Inquiry
The Attorney General’s office is seeking comprehensive evidence, including communications between the company and its customers, documents shared with investors, internal company complaint records, operational procedures, marketing materials, and banking records. The investigation is being handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn. The focus is on gathering information to determine if the company has violated the state’s Deceptive and Unfair Trade Practices Act and other relevant laws.
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.