A Tampa-based real estate investment firm, RAD Diversified REIT Inc., is currently under investigation by Florida Attorney General James Uthmeier’s Office for potential violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on allegations that the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, may be operating a Ponzi scheme.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for deceptive practices.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are specifically targeted in the investigation.
- Allegations suggest the firm may be operating a Ponzi scheme, with investors unable to retrieve funds.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
Investigation Details
The investigation was initiated following multiple complaints from investors who claim they are unable to collect returns or recover their initial investments. Attorney General 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." He further 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."
Subpoenas Issued
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are known for their online presence as 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. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
Focus of the Investigation
The Attorney General’s Office is seeking to gather comprehensive information regarding the complaints and to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers. Evidence being sought includes communications between the company and its clients, marketing materials, financial records, customer complaints, and internal company procedures. The investigation aims to uncover whether the firm has engaged in deceptive practices and potentially defrauded investors.
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.