- The SEC has filed a lawsuit against Retail Ecommerce Ventures (REV) co-founders Alex Mehr and Tai Lopez, along with COO Maya Burkenroad, accusing them of defrauding investors out of $112M. These allegations relate exclusively to REV, which briefly operated legacy brands including RadioShack, Pier 1, and Modell’s. RadioShack’s current owner, Unicomer Group, has no affiliation with REV and acquired the brand’s global intellectual property in 2023.
- The trio allegedly sold high-yield, unsecured notes and equity shares while misrepresenting the financial health of REV’s portfolio, which included RadioShack, Pier 1 Imports, and Modell’s.
- According to the SEC, around $6M in investor payouts were “Ponzi-like,” funded by new investors rather than business revenue. Another $16M was allegedly used for personal expenses.
- REV’s retail portfolio was never profitable, and the company dissolved in 2023 after creditors foreclosed on its assets.
Retail Revival Gone Wrong
REV, a Florida-based firm founded by entrepreneur Alex Mehr and influencer Tai Lopez, gained attention for acquiring legacy retailers out of bankruptcy—including RadioShack at the time. However, in 2023, the brand’s global intellectual property was acquired by Unicomer Group, which now owns and operates RadioShack worldwide.
On Tuesday, the SEC filed a civil lawsuit in the Southern District of Florida against Alex Mehr, Tai Lopez, and REV COO Maya Burkenroad. The agency accuses them of orchestrating a scheme that misled hundreds of investors between 2020 and 2022, reported Bisnow.
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What The SEC Alleges
According to the complaint, the REV executives raised millions by selling unsecured notes that offered annual returns of up to 25%. They also sold equity stakes that promised monthly payouts to investors. They marketed these investments as safe and backed by strong cash flow, despite the brands consistently operating at a loss.
The SEC claims that:
- Roughly $6M paid to early investors came from funds raised from later investors—a hallmark of a Ponzi scheme.
- About $16M in investor capital was misappropriated for personal use.
- The executives continued raising funds even as the business faltered, eventually relying on loans and cash advances to stay afloat.
REV’s Collapse
Despite the promises of a retail renaissance, the brands under REV’s umbrella—including Dressbarn, Stein Mart, and Linens ’N Things—failed to turn a profit. By 2023, the company’s secured creditors foreclosed on its assets. REV dissolved, and those assets were transferred to a new entity, Omni Retail Enterprises.
The dissolution of REV did not affect the RadioShack brand itself, which was subsequently acquired and relaunched by Unicomer Group.
What’s Next
The SEC is seeking civil penalties, a ban preventing the defendants from serving as officers of public companies, and repayment of allegedly ill-gotten gains. The case underscores the risks of private investment in distressed retail brands, especially when wrapped in high-yield promises.
Why It Matters
This case highlights growing regulatory scrutiny of startup-style turnarounds in the retail sector. As traditional brands look for second lives online, the lines between innovation and investor deception may be blurrier than they appear.
