A Tampa-based real estate investment firm, RAD Diversified REIT Inc., and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are currently under investigation by Florida Attorney General James Uthmeier’s Office. The probe centers on allegations of violating the state’s Deceptive and Unfair Trade Practices Act, with concerns that investor funds may not be used for property acquisition as advertised.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for potential deceptive practices.
- Subpoenas have been issued, demanding documents by July 18.
- The investigation stems from multiple investor complaints.
Investigation Details
The Attorney General’s office has issued subpoenas to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation is focusing on Mendenhall and Vaughn, who have gained prominence as social media influencers promoting real estate investment seminars. These seminars reportedly encourage investments in Florida real estate through the company and its associated entities.
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 commented, “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.”
Investor Complaints and Subpoena Scope
The Attorney General’s Office has received numerous complaints from investors in RAD Diversified. These individuals report being unable to collect returns or retrieve their invested capital. 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 subpoenas seek comprehensive documentation, including:
- Communications between the company and its customers.
- Documents shared with customers.
- Records of complaints filed with the company.
- Outlines of company procedures.
- Marketing materials.
- Banking records.
- Other relevant evidence.
Mendenhall and Vaughn are expected to respond to the subpoenas by July 18, providing the requested documents to the prosecutors handling the case. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the investigation.