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 violations of the state’s Deceptive and Unfair Trade Practices Act. The probe centers on potential Ponzi scheme activities and deceptive marketing tactics employed by the company and its owners.
Key Takeaways
- Florida Attorney General’s Office is investigating RAD Diversified REIT Inc. for potential deceptive practices and a Ponzi scheme.
- Owners Brandon “Dutch” Mendenhall and Amy Vaughn are specifically targeted in the investigation.
- Subpoenas have been issued, demanding documents from the company and its owners by July 18.
- Multiple investor complaints allege inability to retrieve returns or initial investments.
- The firm and its owners are known for promoting investment seminars and social media content.
Investigation Details
The investigation was initiated following multiple complaints from investors who claim they are unable to recover their invested funds or receive promised returns from RAD Diversified REIT Inc. Attorney General Uthmeier stated in a news release that the office has received reports of the company "pocketing cash instead of buying properties as advertised," suggesting a potential Ponzi scheme.
Subpoenas have been issued to RAD Diversified REIT Inc., its subsidiaries, and owners Brandon “Dutch” Mendenhall and Amy Vaughn. Mendenhall and Vaughn are recognized for their online presence as influencers who promote seminars encouraging investments in Florida real estate through the company. The investigation aims to determine if the company’s real estate holdings are equivalent in value to the total amount invested by its customers.
Documents Requested
The Attorney General’s Office is seeking a range of documents to aid their investigation. These include:
- 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.
Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case. The company and its owners have until July 18 to comply with the subpoenas and provide the requested documentation.
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.