Peiffer Wolf is investigating RAD Diversified REIT (“RAD”), a Tampa-based real estate investment trust product, that was allegedly marketed as a way for investors to earn income and long-term appreciation through residential and commercial real estate investments.
However, as a non-traded REIT, it posed extra risks for investors because investors had limited ability to sell their shares. The company has now filed for Chapter 11 bankruptcy and plans to liquidate its assets. According to bankruptcy filings, over 5,000 investors and about 1,500 creditors are involved in the proceedings. RAD, which owns more than 300 properties, primarily in the Philadelphia area, reported assets and liabilities between $50 million and $100 million.
We are currently investigating potential claims against brokerage firms for failing to supervise registered investment advisors who recommended RAD to investors. If you invested in RAD and suffered losses, contact Peiffer Wolf today by filling out a Contact Form or calling 585-310-5140 to schedule a FREE case evaluation.
RAD Diversified REIT | What Happened
Real estate investment trusts (REITs) like RAD allow investors to own shares in income-producing real estate without managing the properties themselves.
RAD has over 300 asset properties, primarily in Philadelphia. It reports assets and liabilities each between $50 million and $100 million. The company recently filed its Chapter 11 petition, aiming to liquidate its real estate portfolio and wind down the company’s operations. More than 5,000 investors are waiting to see whether they will recover any of their investments, which allegedly range from $1,000 to $1 million and were made through Reg A and Reg D offerings for this non-traded REIT. The company also has roughly 1,500 creditors.
RAD Asserts Publicity Adds To Its Problems
The problems facing RAD were, according to RAD, exacerbated by considerable publicity:
- The first blow came in April 2025 when the U.S. Securities and Exchange Commission declared RAD’s offering statement “abandoned,” effectively cutting off the company’s ability to raise new capital.
- In May 2025, RAD’s founders Brandon “Dutch” Mendenhall and Amy Vaughn were also served with an eviction notice by the landlord of RAD’s Tampa office.
- In a July 2025 news release, Florida Attorney General James Uthmeier stated that RAD “appears to be a Ponzi scheme,” adding that “with several individuals claiming they’ve been exploited, we are investigating to ensure Floridians are not being deceived by greedy fraudsters.”
- In August 2025, a civil lawsuit filed by talk-show host Buck Sexton brought additional scrutiny to RAD, as well as to Mendenhall and Vaughn personally. Sexton attended a RAD conference as a paid speaker, contributed over $100,000 to the company, and allowed his name to be used in marketing for the REIT through his national radio show. In his lawsuit, Sexton alleges that he was misled and defrauded, and that the company failed to provide “direct access to undervalued real estate investments.” Although RAD moved to dismiss the case, the litigation remains ongoing.
- Additionally, Forbes published an in-depth article on RAD in December 2025 that included first-person accounts of former employees and several investors, including one who later joined the board of directors and began looking into the company’s financial dealings. When he began asking questions, he was locked out of the accounts and removed from the board.
If you invested in RAD and suffered losses, contact Peiffer Wolf today by filling out a Contact Form or calling 585-310-5140 to schedule a FREE case evaluation.
Potential Third-Party Securities Fraud Claims
Mendenhall and Vaughn also face scrutiny for their appearance on Going Public, a show that allows viewers to invest in featured startups in real time. The pair appeared as guest advisors and mentors during the third season.
If you invested in RAD after Mendenhall and Vaughn’s appearance on Going Public and suffered losses, it is imperative to take action. Contact Us today by filling out a Contact Form or by calling 585-310-5140 to schedule a FREE Case Evaluation.
Did You Invest in RAD Diversified REIT?
Peiffer Wolf investment and securities fraud attorneys are admitted to practice around the country and can help recover investment losses due to broker misconduct. We have represented thousands of victims and we remain committed to fighting on behalf of investors.
If you invested in RAD and suffered losses, it is imperative to take action. Contact Us today by filling out a Contact Form or by calling 585-310-5140 to schedule a FREE Case Evaluation.
Get a FREE case Evaluation.
"*" indicates required fields
