Florida Attorney General Targets RAD Diversified REIT Over Suspected Ponzi Scheme

Posted on July 31st, 2025 at 3:38 PM
Florida Attorney General Targets RAD Diversified REIT Over Suspected Ponzi Scheme

From the desk of Jim Eccleston at Eccleston Law

Florida Attorney General James Uthmeier has launched an aggressive investigation into RAD Diversified REIT, Inc., its subsidiaries, and its owners, Brandon “Dutch” Mendenhall and Amy Vaughn, for allegedly violating Florida’s Deceptive and Unfair Trade Practices Act and other state laws.

Mendenhall and Vaughn have built a following through online videos and in-person seminars, encouraging Floridians to invest in real estate via RAD Diversified REIT. According to Barron’s, the pair markets the fund as a solution for individuals unable to purchase property outright, presenting RAD as a vehicle for collective real estate investment.

However, a series of investor complaints has triggered serious legal scrutiny. Barron’s reports that multiple individuals claim they cannot access returns or retrieve invested funds.

The Attorney General suggests these allegations may indicate a Ponzi scheme in which the operators “pocket cash instead of buying properties as advertised.” In response, Uthmeier has issued sweeping subpoenas to RAD Diversified REIT, its subsidiaries, and its principals. The subpoenas demand production of:

  • Communications with investors
  • Investor-facing documents and marketing materials
  • Internal procedural manuals
  • Complaints received by the company
  • Offering statements and prospectuses
  • Financial and banking records
  • Documentation outlining shareholder information and real estate holdings

The Attorney General's office aims to determine whether RAD Diversified REIT owns real estate assets in proportion to the investments it has solicited. Special Counsel Ellen Lyons and Senior Assistant Attorney General Miles Vaughn are leading the case.

While RAD Diversified’s owners have not publicly responded to the subpoenas, the state's probe continues to intensify. The investigation underscores the growing intersection of online influence, real estate investment schemes, and regulatory enforcement in Florida’s consumer protection landscape.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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