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 deceptive practices and potential violations of state laws governing trade.
Key Takeaways
- RAD Diversified REIT Inc. and its owners are being investigated for potential violations of Florida’s Deceptive and Unfair Trade Practices Act.
- The Attorney General’s Office has received multiple investor complaints regarding an inability to retrieve returns or principal investments.
- Subpoenas have been issued, demanding documents and communications related to the firm’s operations and marketing.
- The investigation is exploring whether the company’s real estate holdings match the value of investor funds pooled.
Investigation Details
The investigation was initiated following numerous complaints from investors who claim they are unable to access their returns or recover their initial investments from RAD Diversified. Attorney General Uthmeier stated that the office has received reports suggesting that funds intended for property acquisition may have been misappropriated, raising concerns of a potential Ponzi scheme.
Subpoenas Issued
Subpoenas have been formally issued to RAD Diversified REIT Inc., its subsidiaries, and its owners, Mendenhall and Vaughn. These individuals have gained prominence as social media influencers, promoting seminars that encourage investments in Florida real estate through the company. They have until July 18 to comply with the subpoenas by providing requested documentation to the Attorney General’s Office.
Scope of Inquiry
The Attorney General’s Office is seeking comprehensive information to determine if the company’s real estate assets are commensurate with the total amount invested by its customers. The investigation aims to gather evidence, including communications between the company and its clients, marketing materials, financial records, and internal procedures, to ascertain the validity of the complaints and ensure that Floridians are not victims of fraudulent activities.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.