SEC: REV founders ran $112M Ponzi scheme
The Securities and Exchange Commission filed a civil lawsuit Monday in the Southern District of Florida accusing Alex Mehr and Tai Lopez, founders of Retail Ecommerce Ventures (REV), of defrauding investors of about $112 million. The SEC alleges the pair misrepresented the profitability and cash flow of distressed retail brands they bought (including RadioShack, Modell's and Pier 1), used new investor funds and intercompany transfers to pay maturing obligations and investor returns, and diverted millions for personal use.
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RadioShack buyers ran a Ponzi scheme, SEC alleges
New information:
- SEC alleges approximately $112 million was defrauded from investors tied to REV
- At least $5.9 million of purported investor returns were allegedly Ponzi-like payments funded by other investors, not profits
- The filing claims $16 million of investor money was allocated for the founders' personal use; the suit covers conduct from 2020–2022 and was filed in the U.S. District Court for the Southern District of Florida