A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by Florida Attorney General James Uthmeier’s Office for alleged violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on claims that the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, may be misappropriating investor funds instead of investing them in real estate as advertised.
Key Takeaways
- Florida Attorney General James Uthmeier’s office is investigating RAD Diversified REIT Inc. and its owners.
- The investigation focuses on potential violations of deceptive trade practices and allegations of a Ponzi scheme.
- Investors have reported being unable to retrieve their returns or initial investments.
- Subpoenas have been issued, demanding documents from the company and its owners 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, who have gained prominence as social media influencers promoting real estate investment seminars, are central to the investigation. The Attorney General’s office has received multiple complaints from investors who claim they are unable to collect promised returns or recover their initial investments.
Allegations of a Ponzi Scheme
In a statement, Attorney General Uthmeier expressed concern, noting that "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 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 determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers. The subpoenas seek comprehensive documentation, including communications with customers, 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 and provide the requested documents to the Attorney General’s office. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are leading the case. The investigation underscores the Attorney General’s commitment to protecting Floridians from fraudulent investment schemes.
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.