Two business owners who acquired popular stores like RadioShack, Modell’s Sporting Goods, and Pier 1 Imports are now being accused of operating a Ponzi scheme. They are alleged to have misled investors and used funds from new investors to pay earlier ones, rather than generating actual profits. The accusations suggest a fraudulent investment operation.
On Monday, the Securities and Exchange Commission sued Alex Mehr and Tai Lopez, the founders of Miami-based Retail Ecommerce Ventures (REV). The SEC claims they took roughly $112 million from investors through fraudulent practices between 2020 and 2022. The agency alleges that Mehr and Lopez misled investors about the financial health of their businesses. This resulted in significant financial losses for those involved.
REV bought a number of struggling retail companies that had filed for bankruptcy, hoping to revive them as online businesses. These included Dress Barn, Linens ’n Things, Modell’s, Pier 1 Imports, and RadioShack. The SEC alleges that, although these brands did bring in some money, none of them were actually making a profit.
Radioshack gained a lot of attention in 2022 when Lopez and his team bought the electronics company and started sharing some unusual tweets on Twitter.
I was shocked to hear that Tai Lopez, the finance YouTuber, is being sued by the SEC! Apparently, they’re claiming he defrauded investors out of a massive $112 million through what they’re calling a Ponzi scheme. It’s really upsetting to see something like this happen, especially with someone who presents themselves as a financial expert. I hope the people affected can get some justice. It’s a serious accusation, and I’m curious to see how it all plays out.
— TopMob (@TopMob) September 30, 2025
SEC allegations
The lawsuit claims Mehr and Lopez led investors to believe their companies were thriving, stating they were “on fire” and had “strong cash flow.” They assured investors that any money raised for a particular company would *only* be used for that business. However, the SEC argues that the pair actually moved funds between their various ventures. They also reportedly depended on loans, money from new investors, and transfers between accounts to pay their debts.
The legal complaint claims that at least $5.9 million paid to investors was not from earned profits, but rather a Ponzi-like scheme using funds from new investors. The Securities and Exchange Commission (SEC) also alleges that Mehr and Lopez spent $16 million on personal expenses.
Maya Burkenroad, the Chief Operating Officer of REV and also Lopez’s cousin, is facing accusations of involvement in the scheme as well. The Securities and Exchange Commission (SEC) claims that REV’s website falsely presented her professional background, stating she had experience leading companies worth millions of dollars. However, prior to working at REV, her work history included being a substitute teacher for preschool children, promoting radio programs, and assisting Lopez in a different business venture.
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2025-09-30 18:19