Investors in RAD Diversified REIT, run by Dutch Mendenhall and Amy Vaughn, are now caught in the middle of a state investigation alleging serious financial misconduct.
While Mendenhall and Vaughn promoted the venture as a high-return, real estate-backed investment, the reality reported by investors tells a different story—one marked by withdrawal delays, questionable valuations, and broken promises.
If you or someone you know has suffered significant investment losses through RAD Diversified REIT or another non-traded REIT, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.
Allegations Against Dutch Mendenhall and Amy Vaughn
The current investigation follows a wave of complaints tied to the financial operations and marketing of RAD Diversified REIT.
How the Florida Investigation Began
According to the Florida Attorney General’s office, the inquiry into RAD Diversified began after investors reported difficulties accessing their funds or receiving promised returns. The core allegation is that Mendenhall and Vaughn used new investor money not for real estate purchases, but to sustain earlier obligations—a hallmark of a Ponzi scheme.
- Subpoenas have been issued to gather internal records and investor communications.
- Allegations include misappropriation of funds and inflated asset values not backed by independent appraisals.
Former employees have supported these concerns, stating that executives manipulated property valuations internally—artificially boosting reported returns while concealing the true financial condition of the fund.
Suspected Violations and Misrepresentation
Authorities are now investigating whether Mendenhall and Vaughn violated Florida’s Deceptive and Unfair Trade Practices Act. The advertised returns may have been based on inflated property values assigned by the company itself—not third-party appraisal firms.
- Promised performance appears inconsistent with market fundamentals.
- Complaints suggest the fund’s leadership may have knowingly misrepresented the investment’s security.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
The Growing Impact on RAD Diversified Investors
The effects of this investigation are already being felt by investors—many of whom remain uncertain about whether they’ll ever recover their principal.
Withdrawal Delays and Liquidity Issues
A growing number of investors have reported delays or complete barriers to withdrawing their money from RAD Diversified. These complaints mirror the liquidity issues seen in other investment fraud cases, where red flags appear only after cash flow dries up.
- Investors say they’ve been unable to access their original investment.
- Some report being ignored or redirected when requesting withdrawals or account explanations.
These frustrations echo past cases where investors were locked into high-risk ventures based on unrealistic promises. Like the Horizon Private Equity case involving John Woods, investors are now questioning whether they were victims of a carefully concealed scheme.
False Promises and Investor Misinformation
RAD Diversified was promoted as a low-risk, high-yield real estate strategy—but the substance of those claims is now being examined.
- Many investors were told their capital was secure and backed by real assets.
- Complaints suggest the executives prioritized growth and marketing over compliance and transparency.
To learn more about how non-traded REITs like RAD Diversified REIT carry risk, watch our video below:
Where to Report and Find Help
If you believe you may have been defrauded, there are additional steps you can take:
- Report to the SEC: Investors can submit complaints via the SEC Investor Complaint Center.
- Use CFPB Resources: The Consumer Financial Protection Bureau provides tools to report unfair practices in financial services.
How Meyer Wilson Werning Supports Investment Fraud Victims
At Meyer Wilson Werning, we represent investors nationwide who have suffered losses due to misrepresentation, Ponzi schemes, and fraudulent investment strategies. If you invested with Dutch Mendenhall and Amy Vaughn’s RAD Diversified REIT and are now facing blocked redemptions or suspect you were misled, we can help.
Our legal team has extensive experience handling complex fraud cases and recovering funds on behalf of harmed investors. We can assess your situation, explain your legal options, and help you seek restitution from those responsible. Contact us today.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What is RAD Diversified REIT, and why is it under investigation?
RAD Diversified is a real estate investment trust. It is now under investigation by the Florida Attorney General’s office following investor complaints about misrepresentations, misuse of funds, and withdrawal delays.
Who are Dutch Mendenhall and Amy Vaughn?
Dutch Mendenhall and Amy Vaughn are the key executives behind RAD Diversified. They are accused of using investor funds to cover prior obligations and inflating returns through questionable property valuations.
What are the signs of a Ponzi-like scheme in this case?
Investors have reported being unable to withdraw their money, which—combined with allegations that new funds were used to pay earlier investors—has raised suspicions of a Ponzi-style structure.
Can investors take legal action against RAD Diversified?
Yes. Depending on the details of your investment, you may have claims for negligence, breach of contract, or violations of consumer protection laws. These claims can be pursued through arbitration or litigation.
Recovering Losses Caused by Investment Misconduct.
