Dozens of properties in Philadelphia and its suburbs are hitting the auction block after their owner filed for bankruptcy and was accused of fraud by federal regulators.
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Tranzon Alderfer is conducting a court-ordered auction for 46 properties that were owned by RAD Diversified REIT, the auctioneer announced Tuesday.
The properties include single-family houses, rowhouses and multifamily properties in Philadelphia and neighboring Chester and Delaware counties. They are being auctioned individually with online bidding starting Tuesday and closing between Oct. 13 and Oct. 15.
The auction was ordered by the U.S. Bankruptcy Court for the Middle District of Florida, the jurisdiction of RAD Diversified REIT's Tampa headquarters.
The REIT filed a Chapter 11 bankruptcy petition in March as it faced mounting legal trouble.
RAD, which owned more than 300 rental properties across Florida, Texas and Pennsylvania, has for years faced complaints from residents about poor conditions and maintenance at its properties, The Philadelphia Inquirer reported in 2022.
The Florida attorney general's office said in July 2025 it was investigating RAD Diversified REIT after receiving complaints that its founders — Brandon Mendenhall and Amy Vaughn — misused investor cash that was meant to purchase real estate. The company also faced lawsuits from investors, including conservative radio talk show host Buck Sexton, who alleged in 2025 that they defrauded him of more than $100K, Barron's reported at the time.
Mendenhall was indicted in May on one count of mail fraud and faces a maximum penalty of 20 years in federal prison.
The Securities and Exchange Commission charged RAD with fraud in July, alleging that it raised $152M from more than 5,500 individuals while lying about its performance and misappropriating the money. The SEC said the founders diverted $54M from investors to The Seminar Solution LLC, an entity they owned and used to pay for personal expenses, including private jet charters and luxury goods.
Last month, bankruptcy officials identified at least $38.5M that had been traced to The Seminar Solution, the Tampa Bay Business Journal reported.
More than 3,200 creditor claims had been filed in the bankruptcy case as of last month. The bankruptcy court has been forcing the REIT to liquidate assets through sales like the Philadelphia auctions to help pay back creditors.
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