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 violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on claims that the company may be misappropriating investor funds instead of acquiring properties as advertised.
Key Takeaways
- RAD Diversified REIT Inc. and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are facing an investigation for potential deceptive practices.
- The Attorney General’s Office has issued subpoenas for company documents and communications.
- Multiple investor complaints allege difficulties in retrieving returns or principal investments.
- The investigation aims to determine if the company’s real estate holdings match the value of investor contributions.
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 capital. The investigation is focusing on Mendenhall and Vaughn, who have gained prominence as social media influencers promoting real estate investment seminars and the company’s investment fund.
Uthmeier stated in a news release, "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. 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."
Subpoenas Issued
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. They are required to provide requested documents to prosecutors by July 18. The investigation seeks to verify whether the company’s real estate assets are equivalent in value to the total amount invested by its customers. The Attorney General’s Office is collecting evidence including communications with customers, marketing materials, financial records, and internal company procedures.
Focus on Investor Protection
The investment fund promoted by Mendenhall and Vaughn is reportedly designed to pool funds from individuals who may not have sufficient capital to purchase real estate independently. The Attorney General’s Office is working to gather comprehensive information to ascertain the legitimacy of the company’s operations and protect Floridians from potential financial fraud.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.