TAMPA, Fla. — The Securities and Exchange Commission filed fraud charges against RAD Diversified REIT, Inc. and its founders, Brandon “Dutch” Mendenhall and Amy Vaughn, alleging they raised at least $152 million from more than 5,500 retail investors nationwide through a fraudulent real estate investment scheme while misappropriating nearly $5 million for personal expenses including private jet charters and luxury goods.
The complaint, filed in the U.S. District Court for the Middle District of Florida, alleges the defendants systematically deceived investors from November 2019 through March 2024 about the Tampa-headquartered REIT’s profitability, stock valuation practices, and liquidity. The SEC says the defendants falsely claimed that “zero investors have ever lost money on their investment” when RADD suffered millions of dollars in annual losses. The defendants used an extensive marketing campaign with unregistered sales agents and high-pressure tactics, invoking Christian values and patriotism to gain investor trust.
The complaint alleges Mendenhall and Vaughn claimed RADD’s ever-increasing stock price was based on independent appraisals of the REIT’s properties, but the properties were never independently valued. The defendants never updated RADD’s stock price beyond July 2023, despite widespread property foreclosures and internal findings showing the price was significantly overstated. The founders allegedly assured investors of liquidity while routinely denying or ignoring redemption requests, which RADD froze in February 2024. The company filed for bankruptcy in March 2026.
The SEC alleges the defendants diverted approximately $54 million of investor funds to relief defendant The Seminar Solution, LLC, an entity owned by Mendenhall and Vaughn. From that entity, the founders misappropriated millions for personal expenses including IRS taxes, private jet charters, luxury goods, and recreational activities.
The SEC’s complaint charges RADD, Mendenhall, and Vaughn with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks permanent injunctions, disgorgement with prejudgment interest against all defendants, civil penalties, conduct-based injunctions, and officer and director bars against Mendenhall and Vaughn. The agency also seeks disgorgement with prejudgment interest against The Seminar Solution.
The investigation was supervised by Assistant Directors Jason R. Berkowitz and Fernando Torres, Acting Supervisory Trial Counsel Russell Koonin, and Senior Accountant Mark Dee, under the supervision of Associate Director Stephanie N. Moot of the SEC’s Miami Regional Office. The SEC’s litigation will be led by Koonin and Trial Counsel Michael Mikulic. The case is pending before the Middle District of Florida.