A Tampa-based real estate investment firm, RAD Diversified REIT Inc., and its owners are 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 stems from multiple investor complaints alleging that funds intended for real estate purchases may have been misappropriated.
Key Takeaways
- RAD Diversified REIT Inc. and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, are facing an investigation for alleged deceptive practices.
- The Attorney General’s Office has issued subpoenas for company documents and communications.
- Investors claim they are unable to retrieve their returns or initial investments.
- The investigation is exploring whether the company’s real estate holdings match the value of investor funds.
Investigation Details
The investigation was initiated following numerous complaints from individuals who invested in RAD Diversified. These investors report being unable to access their promised returns or recover their principal investments. Attorney General Uthmeier stated that the office has received allegations that the company might be "pocketing cash instead of buying properties as advertised," and that the situation "appears to be a Ponzi scheme."
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 social media presence and seminars promoting real estate investments through the company, particularly targeting Floridians with limited capital for outright property purchases. The issued subpoenas demand the production of various documents by July 18, including:
- Communications between the company and its customers
- Documents shared with customers
- Internal company complaint records
- Company operational procedures
- Marketing materials
- Banking records
The primary goal of the investigation and the subpoenas is to ascertain whether the company’s real estate assets are equivalent in value to the total amount invested by its customers.
Legal Team Assigned
Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are leading the investigation on behalf of the Attorney General’s Office. The office is committed to uncovering the facts and ensuring that Floridians are protected from potential fraudulent activities.
Sources
- Tampa real estate investment firm under investigation for potential deceptive practices, Florida Politics.