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 deceptive practices and potential violations of state laws. The probe centers on the company’s owners, Brandon “Dutch” Mendenhall and Amy Vaughn, who have gained a following as social media influencers promoting real estate investments.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for potential deceptive practices.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are subjects of the investigation.
- The firm is accused of operating a Ponzi scheme, with investors unable to retrieve their funds or returns.
- Subpoenas have been issued, demanding company documents by July 18.
Investigation Details
Attorney General Uthmeier stated that his office has received multiple complaints from investors who claim they cannot access their returns or recover their initial investments. These allegations suggest that the company may not be using investor funds for property acquisition as advertised, potentially pocketing the cash instead. Uthmeier described the situation as a potential Ponzi scheme, emphasizing the office’s commitment to protecting Floridians from fraudulent activities.
Subpoenas Issued
RAD Diversified REIT Inc., its subsidiaries, and owners Mendenhall and Vaughn have been served with subpoenas. They are required to provide requested documents to the Attorney General’s Office by July 18. 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 office is seeking evidence including customer communications, marketing materials, financial records, and internal procedures.
Company’s Business Model
Mendenhall and Vaughn have actively promoted their investment fund through videos and social media, presenting it as a vehicle to pool investor capital for real estate ventures. This strategy specifically targets Floridians who may lack the substantial funds needed for direct property ownership. The investigation will scrutinize these promotional activities and the company’s actual investment practices.
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.