{"id":1665,"date":"2025-09-26T17:44:17","date_gmt":"2025-09-26T17:44:17","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/buyers-of-radio-shack-pier-1-imports-and-other-brands-accused-of-running-112-million-ponzi-scheme\/"},"modified":"2025-09-26T17:44:17","modified_gmt":"2025-09-26T17:44:17","slug":"buyers-of-radio-shack-pier-1-imports-and-other-brands-accused-of-running-112-million-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/buyers-of-radio-shack-pier-1-imports-and-other-brands-accused-of-running-112-million-ponzi-scheme\/","title":{"rendered":"Buyers of Radio Shack, Pier 1 Imports and other brands accused of running $112 million Ponzi scheme"},"content":{"rendered":"\n
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A pair of e-commerce entrepreneurs who bought a number of well-known retail brands \u2014 including RadioShack, Modell’s Sporting Goods and Pier 1 Imports \u2014 out of bankruptcy are accused of running a Ponzi scheme.\u00a0<\/p>\n

The Securities and Exchange Commission on Monday accused Alex Mehr and Tai Lopez, founders of the Miami-based Retail Ecommerce Ventures (REV), of defrauding investors out of approximately $112 million.<\/p>\n

Through their holding company, Mehr and Lopez acquired distressed brick-and-mortar companies in order to turn them into successful, online-only brands. Dress Barn and Linens ‘n Things were also among their acquisitions.\u00a0<\/p>\n

REV acquired RadioShack in 2020, three years after the nearly century-old electronics chain filed for its second bankruptcy. RadioShack first filed<\/span> for Chapter 11 protection in 2015. In 2023, Unicomer Group acquired RadioShack, and in 2024, relaunched it as an e-commerce platform. RadioShack’s current owners are not named in the lawsuit.<\/p>\n

Modell’s Sporting Goods filed for bankruptcy in March 2020<\/span>, when it also announced it would be closing all of its stores. REV bought the Modell’s brand name and assets in August 2020. Pier 1 Imports \u2014 which still exists as an online store \u2014 declared bankruptcy in early 2020. REV acquired its trademark name and assets later that same year.<\/p>\n

The SEC’s suit alleges that between 2020 and 2022, Mehr and Lopez, “made material misrepresentations” to hundreds of investors about the bankrupt retailers they had acquired. For example, to entice individuals to invest in their acquisitions, they said their portfolio companies were “on fire” and that “cash flow is strong.” They also told prospective backers that money raised for a company would only be invested in that specific firm. That proved not to be the case, according to the SEC’s lawsuit, which was filed Monday in the U.S. District Court for the Southern District of Florida.<\/p>\n

“Contrary to these representations, while some of the REV Retailer Brands generated revenue, none generated any profits,” the suit states. “Consequently, in order to pay interest, dividends and maturing note payments, Defendants resorted to using a combination of loans from outside lenders, merchant cash advances, money raised from new and existing investors, and transfers from other portfolio companies to cover obligations.”\u00a0<\/p>\n

Neither Mehr nor Lopez immediately responded to CBS News’ request for comment.\u00a0<\/p>\n

The SEC alleges that at least $5.9 million of returns paid to investors were actually Ponzi-like payments funded by other investors, as opposed to companies’ profits.\u00a0<\/p>\n

Additionally, the federal regulatory agency claims that Mehr and Lopez allocated $16 million worth of investments for their own use, according to the filing.\u00a0<\/p>\n

REV Chief Operating Officer Maya Burkenroad is also accused of aiding Lopez and Mehr’s alleged crimes. On REV’s website, Burkenroad, who is Lopez’s cousin, was described as having “over 10 years of experience managing multi-million-dollar companies,” according to the complaint.\u00a0<\/p>\n

But the SEC claims Lopez and Mehr misrepresented her experience. Before joining REV, she had worked as a substitute preschool teacher, a promoter at a radio station, and as an assistant to Lopez at a prior endeavor, the complaint alleges.<\/p>\n

Burkenroad didn’t immediately respond to a request for comment.\u00a0<\/p>\n

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