The Securities and Exchange Commission has filed a civil action against RAD Diversified REIT, Inc., Brandon “Dutch” Mendenhall, Amy Vaughn, and The Seminar Solution, LLC, alleging investment fraud related to the REIT’s fundraising practices and operations. The SEC announced the charges on July 29, 2026, as Litigation Release No. LR-26596, marking the latest federal enforcement action against operators of nontraded real estate investment trusts.
What the SEC complaint alleges
The SEC’s civil complaint accuses RAD Diversified REIT and its principals of misleading investors about the nature, risks, and financial condition of the REIT’s investment offerings. Brandon Mendenhall and Amy Vaughn are named as individual defendants alongside the corporate entity. The Seminar Solution, LLC is named as a relief defendant, indicating that the SEC seeks disgorgement of funds that allegedly flowed to this entity from investor capital.
Civil fraud complaints filed by the SEC typically allege misrepresentations about property valuations, rental income projections, or the use of investor funds. The commission’s Enforcement Division conducts extensive investigations before filing charges, reviewing financial records, communications, and testimony from multiple witnesses.
Key facts about the RAD Diversified REIT case
| Case | SEC v. RAD Diversified REIT, et al. |
| Litigation Release | LR-26596 |
| Filing Date | July 29, 2026 |
| Defendants | RAD Diversified REIT, Inc.; Brandon “Dutch” Mendenhall; Amy Vaughn |
| Relief Defendant | The Seminar Solution, LLC |
| Case Type | Civil enforcement action |
What investors should know about nontraded REITs
Nontraded REITs are real estate investment trusts that do not list on public stock exchanges. They frequently charge high upfront fees that can consume 10 to 15 percent of an investor’s principal before any returns are generated. These fees reduce the actual amount of capital working on behalf of the investor. The lack of a public market also means investors cannot easily sell shares if they need liquidity before a liquidity event or liquidation occurs.
The SEC has repeatedly warned retail investors about the risks of nontraded REITs. Marketing materials often emphasize stable monthly income while downplaying the risks of illiquidity, fee drag, and potential property devaluation. FINRA suitability rules require brokers to confirm that these complex products match a client’s investment objectives, risk tolerance, and financial condition before recommending them.
Red flags that should have been caught
Several warning signs should alert investors and their advisors to potential problems with REIT investment programs. Marketing through seminar companies, as alleged in this case, often involves high-pressure sales tactics and promises of above-market returns with minimal risk. Claims of guaranteed income or risk-free real estate investments should be treated as immediate red flags.
Investors should verify that any REIT is properly registered with the SEC and that its financial statements are audited by an independent certified public accounting firm. Unaudited financials or verbal promises of returns that exceed publicly traded REIT yields warrant scrutiny. The presence of a relief defendant in this case suggests the SEC believes investor funds were diverted to entities not directly involved in the REIT’s stated business purpose.
What affected investors can do now
Investors who purchased shares in RAD Diversified REIT or who were solicited by Brandon Mendenhall, Amy Vaughn, or their representatives should preserve all account statements, offering documents, marketing materials, and correspondence. Documentation of seminar attendance and sales presentations can serve as critical evidence in any future FINRA arbitration or civil recovery action.
The SEC’s complaint represents the beginning of the enforcement process. The commission seeks injunctive relief to prevent future violations, disgorgement of ill-gotten gains, prejudgment interest, and civil monetary penalties. Individual investors retain the right to pursue private claims through FINRA arbitration, which provides a faster and less expensive alternative to federal court litigation.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in REIT recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
