Two entrepreneurs who bought well-known bankrupt retail brands, including RadioShack, Pier 1 Imports, and Modell's Sporting Goods, are now accused of running a $112 million Ponzi-like scheme.
The Securities and Exchange Commission (SEC) filed a lawsuit Monday accusing Alex Mehr and Tai Lopez, founders of Retail Ecommerce Ventures (REV), of misleading hundreds of investors.
REV had acquired several troubled brick-and-mortar stores to turn them into online-only brands.
RadioShack, a nearly century-old electronics retailer, was bought by REV in 2020 after its second bankruptcy.
That same year, REV acquired Modell's Sporting Goods and Pier 1 Imports, both of which had also filed for bankruptcy earlier in 2020. According to CBS News, other brands bought by REV include Dress Barn, Stein Mart, and Linens 'n Things.
According to the SEC, between 2020 and 2022, Mehr and Lopez made false claims to investors about the health of these companies.
They told investors the brands were "on fire" and that "cash flow is strong." They also said money raised for each company would be used only for that specific business. However, the lawsuit reveals these statements were untrue.
Owners of RadioShack and Pier 1 Imports accused by SEC of operating $112 million Ponzi scheme.
— NicoleTarinaM2 (@NicoleTarinaM2) September 25, 2025
The US Securities and Exchange Commission accused Alex Mehr and Tai Lopez, founders of Miami-based Retail Ecommerce Ventures (REV), of duping investors out of roughly $112 million,… pic.twitter.com/gKlrGqCwpA
$5.9 Million in Ponzi-Like Payments Linked to REV Retail Ecommerce Ventures
The SEC lawsuit states, "While some of the REV Retailer Brands generated revenue, none generated any profits."
To cover payments like interest and dividends, the founders allegedly used a mix of loans, cash advances, and new investor money.
This cycle of paying old investors with new money is what the SEC calls Ponzi-like payments.
The SEC further alleges that $5.9 million paid to investors came from other investors' funds, not actual business profits, Complex reported.
In addition, Mehr and Lopez are accused of taking $16 million from investor money for their personal use.
REV's Chief Operating Officer, Maya Burkenroad, is also mentioned in the complaint. She is said to have helped in the alleged scheme.
Though described on REV's website as having "over 10 years of experience managing multi-million-dollar companies," the SEC claims she had worked in very different roles before joining REV.
Neither Mehr nor Lopez responded to requests for comment.
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