Ponzi Scheme Claims Involving Radio Shack, Pier 1 Imports and Other Brands
Ponzi Scheme Claims Involving Major Retail Brands
A pair of e-commerce entrepreneurs who purchased well-known retail brands — including RadioShack, Modell's Sporting Goods, and Pier 1 Imports — are facing serious allegations of running a Ponzi scheme. The Securities and Exchange Commission (SEC) has accused Alex Mehr and Tai Lopez, founders of the Miami-based Retail Ecommerce Ventures (REV), of defrauding investors out of approximately $112 million.
Through their holding company, Mehr and Lopez acquired distressed brick-and-mortar companies with the goal of transitioning them into successful online-only brands. Other notable acquisitions by REV include Dress Barn and Linens 'n Things.
Details of the Allegations
- REV acquired RadioShack in 2020, three years after the electronics chain filed for its second bankruptcy.
- Modell's Sporting Goods filed for bankruptcy in March 2020, closing its stores shortly thereafter; REV bought the brand in August 2020.
- Pier 1 Imports declared bankruptcy in early 2020 and was acquired by REV later that same year.
The SEC's suit alleges that between 2020 and 2022, Mehr and Lopez engaged in fraudulent activities to mislead investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.