Drew Dixon
A Tampa-based real estate investment firm is under investigation by Attorney General James Uthmeier’s Office for possibly violating the state’s Deceptive and Unfair Trade Practices Act and other laws.
Uthmeier has issued subpoenas for RAD Diversified REIT Inc. and its subsidiaries, along with owners Brandon “Dutch” Mendenhall and Amy Vaughn. The investigation focuses on Mendenhall and Vaughn, who have become internet and social media influencers and promote seminars that encourage investments in Florida real estate through the company and associated subsidiaries.
“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,” Uthmeier said in a news release. “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.”
Those owners and the company have until July 18 to respond to the subpoena by providing documents to the prosecutors in the case. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are handling the case.
Uthmeier’s Office has received multiple complaints from several investors in RAD Diversified who say they can’t collect returns or get their money back after getting involved in the investment proposal.
Mendenhall and Vaughn take part in multiple videos and social media efforts promoting their fund. They say it’s designed to pool investor funds for real estate investments, according to the Attorney General’s news release. The plan is targeting Floridians who may not have enough money to buy real estate outright.
“The investigation and subpoenas seek to gather information about these complaints and whether the company owns real estate equivalent in value to the amount invested by RAD Diversified REIT customers,” the Attorney General’s news release said.
Uthmeier’s Office is seeking evidence of communication between the company and customers, documents shared with customers, complaints filed with the company, outlines of company procedures, marketing materials, banking documents and other evidence.
