'Zero Investors Have Ever Lost Money': SEC Sues Tampa REIT and Founders Over Alleged $152 Million Scheme

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

The marketing invoked Christian values and patriotism and promised that "zero investors have ever lost money." The Securities and Exchange Commission says the real estate investment trust was losing millions of dollars a year.

On July 29, 2026, the SEC sued RAD Diversified REIT, Inc. ("RADD"), a Tampa, Florida-based real estate investment trust, and its founders Brandon "Dutch" Mendenhall and Amy Vaughn in the U.S. District Court for the Middle District of Florida [1]. The case is SEC v. RAD Diversified REIT, Inc., et al., No. 8:26-cv-02186.

Important: These are allegations. No defendant has been found liable, and the release reports no settlement. We found no public response from the founders. The SEC says RADD froze redemptions in February 2024 and filed for bankruptcy in March 2026.

What the SEC alleges

According to the complaint, from November 2019 through March 2024, the defendants raised at least $152 million from more than 5,500 retail investors nationwide, using an extensive marketing campaign, unregistered sales agents and high-pressure tactics [1]. The SEC alleges the defendants deceived investors about:

1. Profitability. They claimed RADD was profitable and that "zero investors have ever lost money on their investment," when RADD allegedly suffered millions of dollars in annual losses.
2. Valuation. They said the ever-rising share price was based on independent appraisals that would be regularly updated. The SEC says the properties were not independently valued and the price was never updated after July 2023, despite widespread foreclosures and internal findings that it was significantly overstated.
3. Liquidity. They assured investors they could cash out, while allegedly denying or ignoring redemption requests.
4. Diversion. About $54 million of investor funds allegedly went to The Seminar Solution, LLC, an entity owned by Mendenhall and Vaughn, and the two allegedly misappropriated nearly $5 million in total, including for IRS taxes, private jet charters, luxury goods and recreation.

The charges

RADD, Mendenhall and Vaughn are charged with violating Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5. The Seminar Solution is named as a relief defendant for unjust enrichment. The SEC seeks injunctions and disgorgement against all defendants, and civil penalties, conduct-based injunctions and officer-and-director bars against Mendenhall and Vaughn [1]. The release does not mention a criminal case.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags with non-traded real estate investments

• Claims that no investor has ever lost money.
• A share price that only goes up and is set by the sponsor.
• Faith or patriotism used as a reason to trust the investment.
• Redemption requests delayed, ignored or "paused."

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
Brandon "Dutch" Mendenhall	U.S. District Court, M.D. Fla. (No. 8:26-cv-02186)	SEC civil complaint filed July 29, 2026; allegations only	[1]
Amy Vaughn	Same	SEC civil complaint filed July 29, 2026; allegations only	[1]
RAD Diversified REIT, Inc.	Same	SEC civil complaint; filed for bankruptcy March 2026 per SEC	[1]
The Seminar Solution, LLC (relief defendant)	Same	Named as relief defendant	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26596, "SEC Charges Real Estate Investment Trust Headquartered in Tampa, Florida, and Founders with Fraud in Alleged $152 Million Scheme," July 29, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26596

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Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, judgment, settlement or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.