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 pocketing investor funds instead of using them for real estate purchases 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 the Deceptive and Unfair Trade Practices Act.
- Allegations include the firm possibly operating a Ponzi scheme and misusing investor funds.
- Subpoenas have been issued for the company and its owners, demanding documents by July 18.
- Multiple investor complaints have been filed, citing inability to retrieve returns or principal.
Investigation Details
Attorney General Uthmeier has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn, who have gained a following as internet and social media influencers, promote seminars encouraging investments in Florida real estate through their company. 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 a wide range of documents, 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 respond to the subpoenas by providing the requested documentation to the Attorney General’s Office. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case. The investigation is ongoing, with the primary goal of uncovering the truth behind the investment practices and protecting Florida residents from potential financial fraud.
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.