The two founders of a Port Richey-based real estate investment trust were indicted on federal theft and embezzlement charges, accused of stealing funds from their employee benefit plans, months after the duo was charged by the SEC in an alleged fraud scheme that raised $152 million from over 5,500 small investors.
The 15-count indictment, filed in federal court in Tampa, charges Brandon Dutch Mendenhall and Amy Marie Smith Vaughn with 10 counts of theft or embezzlement from an employee benefit plan and five counts of theft or embezzlement in connection with health care.
Mark Rankin, the attorney representing Mendendall, said his client is not guilty of the charges and looks forward to defending himself in court. Vaughn’s attorney could not be reached for comment.
According to the indictment, Mendenhall and Vaughn were founders and owners of RAD Diversified REIT, RADD Capital LLC, The Seminar Solution LLC and DHI Holdings, and allegedly oversaw the entities’ financial activities, including forwarding employee contributions to retirement and health insurance plans.
The indictment alleges that beginning in May 2024, the defendants withheld money from employees’ paychecks for the companies’ 401(k) plans but did not remit the funds to the retirement-plan provider. The 10 counts cover alleged withholding on dates from May 2024 through February 2025, with individual amounts ranging from $60 to $3,317.
The indictment separately alleges that between September 2024 and January 2025, Mendenhall and Vaughn withheld employee contributions intended for health insurance premiums but failed to remit the money to the health insurance provider. The five counts involve amounts ranging from $302 to $8,395.
The indictment seeks forfeiture of property that constitutes or was derived from proceeds traceable to the alleged offenses.
Mendenhall and Vaughn each face up to 10 years in federal prison if convicted, according to the U.S. Attorney’s Office.
The case was investigated by the U.S. Department of Labor’s Employee Benefits Security Administration, FBI, IRS Criminal Investigation and the Florida Office of Financial Regulation’s Bureau of Financial Investigations.
Mendenhall was also indicted in May on a federal mail fraud charge alleging he submitted false information on a mortgage application to obtain financing for a $1.6 million home at 4604 Clarksdale Lane in Brandon. His attorney refuted that charge. If convicted, Mendenhall faces up to 20 years in prison.
In July, the SEC charged Mendenhall, Vaughn and their REIT with orchestrating a $152 million fraud scheme. Regulators allege the duo defrauded over 5,500 small investors by promoting the company as a profitable, patriotic and Christian-valued investment opportunity while allegedly misappropriating investments.
According to the SEC complaint, Mendenhall and Vaughn raised funds through unregistered offerings between 2019 and 2024. The REIT allegedly lost over $20 million annually, yet the founders falsely claimed the company was profitable and that its share price had steadily risen from $10 to $25.04. These valuations allegedly were fabricated, while the company allegedly hid mortgage debt and faced foreclosure actions on over 166 properties.
The SEC alleges the founders diverted approximately $54 million of investor capital to another entity they owned, “The Seminar Solution.” From there, Mendenhall allegedly misappropriated at least $2.3 million and Vaughn $2.5 million for personal luxuries, including private jet travel, designer clothing, jewelry, golf, and adult nightclub expenses. While publicly claiming to defer their salaries, they allegedly used investor funds to finance their lifestyles.
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