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.
National reporting has cataloged lawsuits, investor claims and missing money. Barron's reported a racketeering suit filed by radio host Buck Sexton and said the SEC had sought documents in its review, while Forbes detailed reporting that investigators and former employees said roughly $100 million in investor funds could not be accounted for. Those stories helped trigger wider scrutiny that preceded the bankruptcy petition.
What the filing says
The petition frames the company as insolvent and asks the court to approve a liquidating plan that would convert investor interests into claims against a debtor estate rather than continue operating as a fund. As reported by Tampa Bay Business Journal, the schedules list the firm's estimated liabilities and show a large unsecured creditor pool that could limit recoveries for individual investors. The filing does not promise full refunds and notes that any distributions will depend on asset sales and court rulings.
How investors may be affected
In Chapter 11 liquidations, creditors, including investors, usually must file proofs of claim and submit supporting documents to be considered for any distribution, with deadlines and procedures set by the bankruptcy court. For background on that process, see guidance on filing a proof of claim from Investopedia and the filing instructions posted on U.S. bankruptcy court sites. Given the size of the creditor pool and the estimated liabilities, recoveries could be partial and will likely take months or years to sort out.
Legal outlook and next steps
The bankruptcy filing does not end regulatory or criminal inquiries. The Florida Attorney General's office has pursued subpoenas and document demands, according to the Florida Attorney General's office, and reporters say the SEC has sought records in its review, according to Barron's. If investigators conclude there was intentional wrongdoing, officials could bring civil or criminal charges even as the bankruptcy case moves forward, a dynamic that can complicate asset recovery for creditors.
Local investors say they want clarity on timelines and who will administer the claims process as the court sets hearing dates. This story will be updated as new filings and official statements become available.
