A Tampa-based real estate investment firm, RAD Diversified REIT Inc., and its owners are currently under investigation by Florida Attorney General James Uthmeier’s Office for alleged deceptive practices. The probe centers on claims that the company may be operating a Ponzi scheme, with investors reporting difficulties in retrieving their 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.
- The investigation is focusing on owners Brandon “Dutch” Mendenhall and Amy Vaughn, who promote investment seminars and social media content.
- Multiple investor complaints allege that the firm is not using funds for property acquisition as advertised and that investors cannot access their money.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
Investigation Details
Attorney General Uthmeier’s office has initiated a formal investigation into RAD Diversified REIT Inc. and its associated subsidiaries. The probe was prompted by numerous complaints from individuals who invested in the company’s real estate ventures. These investors claim they are unable to collect promised returns or reclaim their initial capital.
Allegations of Deceptive Practices
The investigation specifically targets the practices of RAD Diversified REIT Inc., its owners Brandon “Dutch” Mendenhall and Amy Vaughn, and their subsidiaries. Mendenhall and Vaughn are known for their presence as internet and social media influencers, where they promote seminars encouraging investments in Florida real estate through their company. The Attorney General’s office stated that complaints suggest the duo might be misappropriating investor funds instead of investing them in properties as advertised, raising concerns about a potential Ponzi scheme.
Subpoenas Issued
As part of the investigation, subpoenas have been issued to RAD Diversified REIT Inc., Mendenhall, and Vaughn. They are required to provide relevant documents to the Attorney General’s office by July 18. The investigation aims to gather evidence, including communications with customers, marketing materials, financial records, and company procedures, to determine if the company’s real estate holdings are equivalent in value to the amount invested by its customers.
Protecting Floridians
Attorney General Uthmeier emphasized the office’s commitment to protecting Floridians from fraudulent activities. "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," Uthmeier stated in a news release. The investigation is being handled by Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn.
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.