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 prominence as social media influencers promoting real estate investment seminars.
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.
- The investigation is exploring allegations of a Ponzi scheme, where investor funds may not be used for property acquisition as advertised.
- Multiple investors have reportedly filed complaints, citing difficulties in retrieving returns or their initial investments.
- Subpoenas have been issued, requiring the company and its owners to provide extensive documentation by July 18.
Investigation Details
The Attorney General’s Office has received numerous complaints from individuals who invested in RAD Diversified’s proposals. These investors claim they are unable to collect promised returns or recover their principal 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 indicated that the situation appears to be a Ponzi scheme, and the office is committed to protecting Floridians from fraudulent activities.
Subpoenas Issued
Subpoenas have been formally issued to RAD Diversified REIT Inc., its subsidiaries, and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn. The legal documents demand the production of various records by July 18. These include communications with customers, marketing materials, financial documents, company procedures, and any complaints filed against the firm. The investigation aims to ascertain whether the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Social Media Influence and Investment Model
Mendenhall and Vaughn have actively used social media platforms and videos to promote their investment fund. They describe the fund as a mechanism to pool investor capital for real estate acquisitions, specifically targeting Floridians who may lack the substantial funds required for direct property ownership. The investigation seeks to gather evidence to determine the veracity of these claims and the overall legitimacy of the company’s operations.
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.