SEC Charges RAD Diversified REIT and Founders with $152 Million Fraud Scheme

SEC accuses Port Richey real estate investment trust, founders of $152 million fraud scheme

____________Bottom lineKey takeaway: Federal regulators say a Port Richey real estate investment trust and its founders orchestrated a $152 million fraud scheme that misled more than 5,500 investors while diverting millions of dollars for personal luxury spending.Core challenge: Thousands of investors now face uncertainty about recovering their money.What’s next: The SEC will seek civil penalties and other sanctions in federal court as Florida's…

SEC Charges RAD Diversified REIT and Founders with $152 Million Fraud Scheme

The Securities and Exchange Commission (SEC) has filed charges against RAD Diversified REIT Inc. (RADD), a Tampa-based real estate investment trust, and its founders Brandon “Dutch” Mendenhall and Amy Vaughn, accusing them of raising at least $152 million from more than 5,500 retail investors nationwide through an alleged fraudulent real estate investment scheme.

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

A Tampa, Florida-based REIT and its two founders are being accused by federal regulators of raising $152M from more than 5,500 investors via splashy social media advertisements, lying about the performance of the investments and misappropriating the funds for personal expenses.