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 named in subpoenas.
- The investigation is looking into potential Ponzi scheme allegations based on investor complaints.
- Investors claim they are unable to collect returns or retrieve their invested funds.
Investigation Details
The Attorney General’s Office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Mendenhall and Vaughn. The investigation was prompted by multiple complaints from investors who claim they are unable to receive their promised returns or get their money back. Attorney General Uthmeier stated in a news release that the office received complaints suggesting that the company is "pocketing cash instead of buying properties as advertised."
Social Media Influence and Investment Model
Mendenhall and Vaughn are known for their presence as internet and social media influencers, promoting seminars that encourage investments in Florida real estate through RAD Diversified and its associated entities. Their investment model reportedly aims to pool funds from individuals who may not have sufficient capital to purchase property outright. The investigation seeks to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Subpoena and Evidence Gathering
RAD Diversified REIT Inc., Mendenhall, and Vaughn have until July 18 to respond to the subpoenas by providing requested documents. The Attorney General’s Office is seeking a range of evidence, including communications between the company and its customers, marketing materials, financial records, customer complaints, and internal company procedures. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
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.