SEC tells court it wants to settle $152M fraud suit against Florida REIT

The SEC notified a federal court in the Middle District of Florida that it has reached terms to resolve its fraud suit against RAD Diversified REIT and its founders, Brandon Mendenhall and Amy Vaughn. The SEC's complaint, filed in July 2026, alleged the defendants raised at least $152 million from more than 5,500 investors while misrepresenting the REIT's profitability, stock valuation and liquidity. The founders separately face a federal criminal indictment alleging theft from employee benefit plans.

Why it matters. The move toward resolving a mid-size nontraded REIT fraud case shows continued SEC pursuit of retail offering fraud and could inform parallel investor recovery efforts.