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, which includes subpoenas issued to the company and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, centers on accusations that investor funds may have been misappropriated instead of being used for advertised real estate purchases.
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 named in the investigation.
- The investigation is looking into allegations that the firm may be operating a Ponzi scheme.
- Investors have reported difficulties in retrieving returns or their initial capital.
Investigation Details
The Attorney General’s Office has received multiple complaints from investors who claim they are unable to collect promised returns or recover their initial investments. These allegations suggest that the company might be pocketing funds rather than investing them in real estate as promoted. Attorney General Uthmeier stated in a news release, "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 issued subpoenas require the company and its owners to provide requested documents to the prosecutors by July 18. The investigation aims to gather evidence regarding the company’s operations, including communications with customers, marketing materials, financial documents, and any customer complaints received.
Focus on Real Estate Holdings
A key aspect of the investigation is to determine whether the company’s real estate holdings are equivalent in value to the total amount invested by RAD Diversified REIT customers. The firm’s investment model reportedly targets Floridians who may not have sufficient funds to purchase property outright, pooling their money for real estate investments. The Attorney General’s Office is seeking to verify the legitimacy of these investments and ensure investor funds are being used as advertised.
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.