Tampa’s RAD Diversified, a real estate trust that drew thousands of retail investors through online seminars and social media pitches, has filed for Chapter 11 and says it will liquidate. The petition sets up a court-supervised wind-down that could leave more than 5,000 investors waiting to see whether any money is recovered. For many local investors the move follows months of missed statements, frozen withdrawals and mounting questions about where their cash went.
As reported by Tampa Bay Business Journal, the Chapter 11 petition filed on Sunday estimates liabilities between $50 million and $100 million and lists more than 5,000 individual investors. The filing asks a federal bankruptcy judge to supervise an orderly sale of assets and a conversion of the trust into a liquidating entity. The Business Journal’s review of the petition is the first public accounting of the trust’s potential exposure.
State regulators had already signaled trouble: in July 2025 the Florida Attorney General’s office issued subpoenas to RAD Diversified and its principals, saying the office had received complaints that the fund “appears to be a Ponzi scheme” and demanding records to verify whether investor money went to actual properties, according to a press release from the Florida Attorney General’s office. Prosecutors sought banking records, marketing materials and investor communications as part of the inquiry…