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.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

December 11, 2025
DOJ Secures Five-Year Prison Sentence in Wolf Capital Crypto Fraud Case

Federal prosecutors have obtained a five-year prison sentence for Travis Ford, an Oklahoma resident who admitted to orchestrating a fraudulent crypto investment scheme through Wolf Capital.

December 10, 2025
SEC Highlights Rising Risks in RIA Consolidation and Focuses on Retailer Investor Protection

The Securities and Exchange Commission signaled heightened scrutiny of investment advisers involved in mergers and acquisitions, according to its newly released 2026 Examination Priorities.

December 9, 2025
The Vanishing Boundary Between Investing and Gambling

According to Bloomberg Law, there now are the tools, tactics, and a psychology of gambling that increasingly resembles those of retail trading.