The SEC has charged RAD Diversified REIT, Inc. and co-founders Brandon "Dutch" Mendenhall and Amy Vaughn over an alleged real estate investment fraud that raised at least $152 million from more than 5,500 retail investors. The Commission alleges that investors were misled about the REIT's profitability, the methodology behind its rising share price, the independence of property valuations, and the liquidity available through redemptions. The SEC also alleges that approximately $54 million of investor funds were transferred to an affiliated entity, The Seminar Solution, LLC, while nearly $5 million was ultimately misappropriated by Mendenhall and Vaughn. :chatgpt-content-reference{index="1"}
U.S. Securities and Exchange Commission (SEC)
Official Release: https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26596
NEWS:
The SEC filed its complaint on July 29, 2026 in the U.S. District Court for the Middle District of Florida against RAD Diversified REIT, Mendenhall and Vaughn. According to the Commission, RADD raised at least $152 million from more than 5,500 investors, primarily through an extensive retail marketing operation. SEC records also show that RAD Diversified REIT used Regulation A offering statements during its fundraising history, including Form 1-A filings under CIK 0001721469. The SEC alleges that investors were told the REIT was profitable and that its rising share price reflected independently determined property values, even though RADD allegedly suffered millions of dollars in annual losses and the underlying properties were not independently valued as represented. :chatgpt-content-reference{index="2"}
The valuation and liquidity allegations are particularly significant. According to the SEC, RADD's share price was not updated after July 2023 despite property foreclosures and internal information indicating that the stated value was substantially overstated. Investors were also allegedly assured that their investments offered liquidity, while redemption requests were routinely denied or ignored. RADD ultimately froze investor redemptions in February 2024. The SEC further alleges that approximately $54 million was transferred to The Seminar Solution, an entity owned by Mendenhall and Vaughn, and that millions were then used for personal expenses including taxes, private jet charters, luxury goods and recreational activities. :chatgpt-content-reference{index="3"}
The deterioration continued beyond the fundraising period. RAD Diversified REIT filed for Chapter 11 bankruptcy on March 1, 2026. The SEC complaint charges RADD, Mendenhall and Vaughn with Securities Act and Exchange Act violations and seeks injunctions, disgorgement, penalties and additional conduct restrictions. Separately, an SEC Form 1-A offering statement filed by RADD was declared abandoned in February 2024 after remaining unqualified for more than nine months. Together, the enforcement action, redemption freeze, abandoned offering statement and bankruptcy create a materially different picture from the liquidity and valuation narrative the SEC says was presented to investors. :chatgpt-content-reference{index="4"}
KEY POINTS:
- The SEC says RAD Diversified REIT raised at least $152 million from more than 5,500 retail investors. :chatgpt-content-reference{index="5"}
- The complaint alleges that investors were misled about profitability, property valuations, share-price calculations and redemption liquidity. :chatgpt-content-reference{index="6"}
- The SEC alleges approximately $54 million of investor funds flowed to affiliated entity The Seminar Solution, LLC.
- Nearly $5 million was allegedly misappropriated by Mendenhall and Vaughn for personal expenses. :chatgpt-content-reference{index="7"}
- Investor redemptions were frozen in February 2024, and RADD later filed for Chapter 11 bankruptcy on March 1, 2026. :chatgpt-content-reference{index="8"}
- An additional RAD Diversified REIT Form 1-A offering statement was declared abandoned by the SEC in February 2024 after remaining unqualified for more than nine months. :chatgpt-content-reference{index="9"}