TAMPA — A co-founder of RAD Diversified REIT has been indicted on a federal mail fraud charge for allegedly inflating his personal income to secure a $1.2 million mortgage on a $1.6 million house, U.S. Attorney Gregory W. Kehoe announced.
Brandon Dutch Mendenhall, 46, of Brandon, operated RAD Diversified REIT and other investment funds that solicited individuals to invest in real estate properties. According to the indictment, Mendenhall began applying for a home mortgage in November 2021 and represented to the lender that business operating accounts for some of his investment funds were his personal income because he was the owner of those businesses. The over-inflated income figures were material to the lender’s decision on whether to approve and fund the loan.
As a result of the alleged misrepresentations, Mendenhall caused mortgage closing documents to be sent by mail to a title company in the Middle District of Florida. If convicted of the single count of mail fraud, he faces a maximum penalty of 20 years in federal prison. The indictment also notifies Mendenhall that the United States intends to forfeit the house, which prosecutors allege is traceable to proceeds of the offense.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Four federal and state agencies investigated the case: the Federal Bureau of Investigation, the Florida Office of Financial Regulation — Bureau of Financial Investigations, the Internal Revenue Service — Criminal Investigation, and the U.S. Department of Labor — Employee Benefits Security Administration. Assistant United States Attorney Merrilyn Hoenemeyer is prosecuting the case.
The FBI is separately asking anyone who invested money with RAD Diversified to complete a voluntary questionnaire at forms.fbi.gov/RADDiversifiedVictim. Questions about the questionnaire can be directed to RADDiversifiedVictim@fbi.gov.