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 alleged deceptive practices.
- Owners Brandon "Dutch" Mendenhall and Amy Vaughn are specifically named in the investigation.
- The investigation is exploring claims that investor funds are being misappropriated instead of used for property acquisition.
- 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 documentation by July 18.
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 examining whether the company has violated the state’s Deceptive and Unfair Trade Practices Act and other relevant laws. This action follows multiple complaints from investors who claim they are unable to collect promised returns or recover their invested capital.
Allegations of a Ponzi Scheme
Attorney General Uthmeier stated in a news release that his office has received complaints suggesting that the "popular internet duo" promoting real estate investment services through their fund may be "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."
The company and its owners are accused of pooling investor funds for real estate investments, particularly targeting Floridians who may lack the capital for outright property purchases. The investigation aims to ascertain if the company possesses real estate assets equivalent in value to the total amount invested by its customers.
Information Sought
RAD Diversified REIT Inc. and its owners have until July 18 to respond to the subpoenas by providing requested documents. The Attorney General’s Office is seeking evidence including communications between the company and its customers, documents shared with investors, internal company procedures, marketing materials, banking records, and any filed complaints.
Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are overseeing the case.
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.