Federal enforcement actions and bankruptcy proceedings have placed RAD Diversified REIT at an unprecedented legal crossroads in 2026.
On July 29, 2026, the SEC filed fraud charges against RAD Diversified REIT, Inc., co-founders Brandon “Dutch” Mendenhall and Amy Vaughn, alleging they orchestrated a $152 million scheme that deceived more than 5,500 retail investors nationwide. Those charges followed the company’s March 1, 2026 Chapter 11 bankruptcy filing and a separate federal indictment of Mendenhall for mail fraud. For the thousands of investors who put money into RAD Diversified’s unregistered securities offerings, these overlapping proceedings raise urgent questions about what happened to their funds and whether recovery is possible.
Investors who purchased RAD Diversified REIT shares or other interests through registered brokers, advisers, or brokerage firms may want to learn about alternative investments and non-traded REIT risks to understand what options may be available.
SEC Fraud Charges Against RAD Diversified REIT and Its Founders
The SEC’s enforcement action, detailed in SEC Litigation Release No. 26596, was filed in the U.S. District Court for the Middle District of Florida. It lays out a series of allegations spanning from November 2019 through March 2024.
Allegations of Investor Deception
According to the SEC’s complaint, RAD Diversified and its founders raised at least $152 million from more than 5,500 retail investors across the country through unregistered securities offerings. The complaint alleges that Mendenhall and Vaughn systematically misled investors about the REIT’s profitability, stock valuation practices, and available liquidity. The SEC alleges the defendants used an extensive marketing campaign that relied on unregistered sales agents and high-pressure tactics, including appeals to Christian values and patriotism, to recruit investors.
The complaint further alleges that RAD Diversified claimed it was profitable and that “zero investors have ever lost money,” when in reality the REIT allegedly suffered millions of dollars in annual losses. According to the SEC, the defendants also told investors that RAD Diversified’s rising stock price was based on independent appraisals and would be regularly updated.
The complaint alleges the properties were never independently valued and that the stock price was not updated beyond July 2023, even as the company faced widespread foreclosures and internal findings showing the stock price was significantly overstated.
The Seminar Solution LLC as Relief Defendant
The SEC’s action also names The Seminar Solution LLC (TSS) as a relief defendant. Secondary coverage of the complaint reports that Mendenhall and Vaughn allegedly diverted approximately $54 million of RAD Diversified investor funds into TSS, an entity they controlled. As a relief defendant, TSS is not accused of directly violating securities laws, but the SEC alleges it received proceeds of the alleged fraud and is seeking to require TSS to disgorge those funds.
The Chapter 11 Bankruptcy: Case No. 8:26-bk-01636
Before the SEC filed its fraud charges, RAD Diversified REIT, Inc. and four affiliated entities filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, on March 1, 2026. The case is captioned RAD Diversified REIT, Inc., et al., Case No. 8:26-bk-01636, and has been assigned to Judge Catherine Peek McEwen. Public filings in the case are available through the bankruptcy court docket.
The debtors reported between $50 million and $100 million in both assets and liabilities. A court-appointed examiner traced thousands of transactions across dozens of bank accounts to investigate allegations of fraud, dishonesty, and mismanagement and to map how investor money flowed among the debtors and commonly controlled non-debtor affiliates.
Bankruptcy coverage indicates that RAD Diversified attributed its Chapter 11 filing in part to a Florida Attorney General investigation that characterized the company as a potential Ponzi scheme, a racketeering lawsuit brought by talk-show host Buck Sexton, and the SEC’s enforcement action. Barron’s and other outlets reported that Sexton filed a federal lawsuit alleging that RAD Diversified and its founders defrauded him of more than $100,000 tied to investment coaching and property deals that allegedly never materialized.
Mendenhall’s Separate Criminal Indictment
In a separate proceeding, the U.S. Attorney’s Office for the Middle District of Florida announced on June 1, 2026 that Mendenhall had been indicted on one count of mail fraud for allegedly submitting false information during the purchase of his $1.6 million house. The case was investigated by the FBI and IRS Criminal Investigation, among other agencies, and will be prosecuted by Assistant U.S. Attorney Merrilyn Hoenemeyer. If convicted, Mendenhall faces up to 20 years in federal prison. That indictment remains an allegation, and Mendenhall is presumed innocent unless and until he is convicted.
Earlier Investigations
These 2026 actions follow investigative reporting from late 2025 indicating that both the SEC and Florida’s attorney general were probing RAD Diversified as a potential Ponzi scheme. An investor with board-level access estimated at the time that roughly $100 million in assets were unaccounted for amid widespread foreclosures across the company’s portfolio of more than 300 properties and vacant lots. Investor Claims previously reported on 2025 RAD Diversified REIT update and investor complaints.
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$350 Million for Our Clients Nationwide.
What This Means for Investors
The SEC’s allegations, if proven, describe a pattern of conduct with serious consequences for retail investors who relied on RAD Diversified’s representations about profitability and stock value, including individuals who invested personal savings or retirement funds in what they were told was a stable, income-generating real estate portfolio.
The alleged use of unregistered sales agents raises additional concerns. If brokers, financial advisers, or other intermediaries recommended or facilitated share sales without adequate vetting, they may bear independent responsibility. Investors steered into RAD Diversified by an adviser or broker may have claims for investment loss recovery through arbitration or securities litigation.
Recovery will depend on parallel proceedings. In the Chapter 11 case, investors may need to file proofs of claim to participate in any distribution. In the SEC enforcement action, any disgorgement or settlement could be distributed through a court-approved process. Investors may also pursue separate claims against the intermediaries who sold or recommended the investments, depending on the facts of their situation.
How Meyer Wilson Werning Can Help
Meyer Wilson Werning represents investors nationwide who have suffered losses due to alleged fraud, unsuitable investment recommendations, and broker or adviser misconduct. With more than 75 years of combined experience and over $350 million recovered for clients across the country over the last 26 years, the firm’s attorneys understand the multiple avenues that may be available to RAD Diversified investors, including bankruptcy proofs of claim, SEC disgorgement proceedings, and securities litigation for investors facing alleged real estate fraud.
If you invested in RAD Diversified REIT and are concerned about your losses, contact us today for a free and confidential consultation to discuss your options.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What are the SEC’s 2026 fraud allegations against RAD Diversified REIT, Brandon “Dutch” Mendenhall, and Amy Vaughn?
According to the SEC’s July 29, 2026 litigation release, RAD Diversified REIT, Mendenhall, and Vaughn are alleged to have raised at least $152 million from more than 5,500 retail investors through unregistered securities offerings while misleading investors about the REIT’s profitability, stock valuation practices, and liquidity. The complaint alleges they falsely claimed the REIT was profitable, that no investors had ever lost money, and that the stock price was based on independent appraisals. All of these allegations remain unproven at this stage, and the defendants are presumed innocent unless and until a court finds otherwise.
Did RAD Diversified REIT file for Chapter 11 bankruptcy, and what is Case No. 8:26-bk-01636?
Yes. RAD Diversified REIT, Inc. and four affiliated entities filed Chapter 11 petitions in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division, on March 1, 2026. The lead case, No. 8:26-bk-01636, is assigned to Judge Catherine Peek McEwen. The debtors reported between $50 million and $100 million in both assets and liabilities, and a court-appointed examiner has been tracing investor money flows across the debtors’ bank accounts.
How is The Seminar Solution LLC connected to the SEC’s case against RAD Diversified REIT?
The Seminar Solution LLC (TSS) is named as a relief defendant in the SEC’s enforcement action. Secondary reporting indicates that Mendenhall and Vaughn allegedly diverted approximately $54 million of investor funds into TSS, an entity they controlled. TSS is not accused of directly violating securities laws, but the SEC is seeking to require it to disgorge any funds it received from the alleged fraud.
What criminal charges has Brandon “Dutch” Mendenhall faced in 2026?
According to a June 1, 2026 announcement from the U.S. Attorney’s Office for the Middle District of Florida, Mendenhall was indicted on one count of mail fraud for allegedly submitting false information during the purchase of his $1.6 million house. The IRS release states that Mendenhall operated RAD Diversified REIT and other investment funds. The criminal charge is separate from the SEC’s civil fraud allegations, and Mendenhall is presumed innocent unless and until he is convicted in court.
Recovering Losses Caused by Investment Misconduct.