SEC v. RAD Diversified REIT, Inc.; Brandon “Dutch” Mendenhall; Amy Vaughn; and The Seminar Solution, LLC, Relief Defendant — U.S. Securities and Exchange Commission Litigation Release No. 26596, dated July 29, 2026.
The SEC charged RAD Diversified REIT, Inc. (RADD) and its founders, Brandon Mendenhall and Amy Vaughn, with defrauding over 5,500 retail investors out of at least $152 million. The defendants allegedly misrepresented RADD's profitability and stock valuation, while misappropriating millions in investor funds for personal use through an affiliated entity, The Seminar Solution, LLC. RADD ultimately froze redemptions and filed for bankruptcy.
In Plain English
Imagine you invested in a company that promised big returns by buying and selling properties. The people running it told you the company was doing great and your investment was safe, even using religious and patriotic messages to build trust. But secretly, the company was losing money, and the value they claimed for their stock wasn't real. They even took millions of dollars from investors and spent it on fancy things for themselves, then stopped letting people take their money out.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Raising Funds Through Deceptive Promises From November 2019 through March 2024, RAD Diversified REIT, Inc. (RADD) and its founders, Brandon Mendenhall and Amy Vaughn, raised at least $152 million from over 5,500 retail investors. They used unregistered sales agents and high-pressure tactics, falsely claiming RADD was profitable and that 'zero investors have ever lost money.'
- Fabricating Profitability and Stock Value Defendants systematically deceived investors about RADD's profitability, claiming it generated substantial revenue. Internally, RADD suffered millions in annual losses. They also touted an increasing stock price, falsely stating it was based on independent appraisals, when Mendenhall's brother, lacking experience, performed the valuations.
- Misrepresenting Liquidity and Redemption Policies Investors were assured of liquidity and the ability to redeem investments if unsatisfied. However, RADD routinely denied or ignored redemption requests due to a lack of funds. In February 2024, RADD froze all stock redemptions, signaling severe liquidity issues.
- Exploiting Investor Trust with Emotional Appeals To gain investor trust, defendants invoked Christian values and patriotism in their marketing campaigns. They encouraged investors to use funds from IRAs, credit cards, or home equity loans, promising security and high returns.
- Diverting Funds to a Personal Entity Approximately $54 million of investor funds were diverted to The Seminar Solution, LLC (TSS), an entity owned by Mendenhall and Vaughn. This entity then misappropriated millions for personal expenses, including IRS taxes, private jet charters, luxury goods, and recreational activities.
- Promoting 'Exclusive' but Non-Existent Opportunities Defendants also promoted an 'exclusive' RADD Inner Circle program, offering investments in Hard Money Loan notes promising 20% returns and joint venture real estate deals. These opportunities were neither exclusive nor capable of producing the promised returns.
- Internal Financial Distress and Overstated Stock Despite claims of growth, RADD suffered millions in annual losses. The stock price, which defendants claimed was updated, was last updated in July 2023, significantly overstating its value given internal findings and widespread property foreclosures.
- Freezing Redemptions and Filing for Bankruptcy Following the February 2024 freeze on redemptions, RADD filed for bankruptcy in March 2026, leaving thousands of retail investors facing significant financial losses and jeopardized retirement savings.
The Enforcement Action
SEC Charges Real Estate Investment Trust Headquartered in Tampa, Florida, and Founders with Fraud in Alleged $152 Million Scheme. The SEC filed charges against RAD Diversified REIT, Inc. (“RADD”), and its founders Brandon “Dutch” Mendenhall and Amy Vaughn, for raising at least $152 million from more than 5,500 retail investors nationwide through an alleged fraudulent real estate investment scheme. The complaint alleges that the defendants systematically deceived investors about RADD’s profitability, stock valuation practices, and liquidity, and that Mendenhall and Vaughn collectively misappropriated nearly $5 million of investor funds. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, conduct-based injunctions, and officer and director bars against Mendenhall and Vaughn. The SEC also seeks disgorgement with prejudgment interest against relief defendant The Seminar Solution, LLC (“TSS”).
Named in this action: RAD Diversified REIT, Inc., Brandon "Dutch" Mendenhall, Amy Vaughn, The Seminar Solution, LLC.