Weekly Real Estate News
The U.S. Securities and Exchange Commission has filed a motion signaling that it wants to settle its investor-fraud lawsuit against RAD Diversified REIT and its founders, according to an October 23 report by Law360. The reported development comes nearly three months after the regulator accused the Florida-based real estate investment trust of raising at least $152 million through misleading statements to investors.
The new filing was reported Friday in SEC v. RAD Diversified REIT Inc. et al., case No. 8:26-cv-02186, in the U.S. District Court for the Middle District of Florida. The motion itself has not been independently reviewed by WRE News, and the reported request to settle does not establish that a settlement agreement has been executed or approved by the court.
SEC alleged widespread investor deception
In its July 29 complaint, the SEC alleged that RAD Diversified REIT and founders Brandon “Dutch” Mendenhall and Amy Vaughn raised at least $152 million from more than 5,500 investors. The regulator accused the defendants of misrepresenting the REIT’s performance, the valuations used to calculate its share price and investors’ ability to sell their holdings.
The complaint alleged that approximately $54 million was transferred to an affiliated business and that nearly $5 million was diverted for personal expenses. These are the SEC’s allegations, not findings of liability by the court.
The SEC also named The Seminar Solution LLC as a relief defendant. Its litigation release announced the original enforcement case in July.
What the latest filing does — and does not — establish
Law360 reported October 23 that the SEC told the federal court it wanted to settle the lawsuit. Because the underlying motion has not been reviewed, it remains unclear whether all defendants have agreed to terms, what financial relief might be proposed, whether admissions are contemplated or what steps the court would need to take next.
Any potential settlement also must be distinguished from the REIT’s separate bankruptcy proceedings in the Middle District of Florida, which could affect creditor and investor recoveries. No amount of investor restitution or distribution schedule has been confirmed in connection with the reported settlement motion.
The case has drawn attention to investor disclosures, private real estate offerings and the methods used to value shares in nontraded real estate vehicles. WRE News covered the original SEC charges in July.
Sources: Law360, October 23, 2026 (reporting on the new motion); SEC complaint, July 29, 2026. The October 23 motion’s complete text remains unverified.
