US EditionRadioShack, Pier 1 Imports owners accused of operating $112 million Ponzi scheme
- Regulators have charged Retail Ecommerce Ventures founders Alex Mehr and Tai Lopez with operating a $112 million Ponzi scheme linked to the acquisition of bankrupt retail brands such as RadioShack and Pier 1 Imports.
- The scheme followed REV's 2020 acquisition of RadioShack and other struggling retailers, after which Mehr and Lopez allegedly made false claims about their profitability and used investor funds improperly.
- The SEC complaint states that REV secured over $230 million from more than 660 investors by offering unsecured notes with annual returns up to 25% and equity shares that provided preferential dividends approaching 2% each month, while falsely claiming the funds would be allocated to individual retail brands.
- The agency alleges that at least $5.9 million in investor returns were Ponzi-like payments funded by new investments, and about $16.1 million was misappropriated for personal use by Mehr and Lopez amid losses and no profits from the portfolio companies.
- As a result, creditors took control and sold the brands to Omni Retail Enterprises, signifying that REV’s relaunch efforts failed and raising questions about future prospects for these retail names.
23 Articles
23 Articles
Former Owners Of RadioShack, Pier 1 And Modell's Accused Of $112 Million Ponzi Scheme
radioshack-pier-1-modells A company that purchased the intellectual property of defunct retailers RadioShack, Pier 1 Imports, Dress Barn, Modell’s Sporting Goods, Brahms, Stein Mart, Linens ‘n Things, and The Franklin Mint, now stands accused of doing something very shady. That company, Retail Ecommerce Ventures (REV), is now being sued by the Securities and Exchange Commission (SEC), which claims the company defrauded its investors out of $112 …
Owners of Radio Shack and Pier 1 Imports accused by SEC of operating $112 million Ponzi scheme
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, according to a federal filing obtained by the Post in the Southern District of Florida.
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