Two entrepreneurs who gained attention for buying up bankrupt retail chains—including Pier 1 Imports, RadioShack, and Modell’s Sporting Goods—are now facing federal fraud charges.
The Securities and Exchange Commission has accused Alex Mehr and Tai Lopez, co-founders of Miami-based Retail Ecommerce Ventures (REV), of running a $112 million Ponzi scheme, according to a lawsuit filed in the Southern District of Florida.
Mehr, a former NASA contractor, and Lopez, a social media influencer and self-help author, launched REV in 2019 during a wave of retail bankruptcies. The firm went on to acquire the assets of Dress Barn, Stein Mart, Pier 1, Modell’s, and RadioShack, promising to reinvent them as online-only brands.
The SEC alleges that between 2020 and 2022, Mehr and Lopez misled hundreds of investors about the performance of those companies, describing them as “on fire,” while concealing the fact that none were profitable. According to the complaint, funds raised from new and existing investors were improperly used to cover obligations such as interest, dividends, and maturing notes—classic hallmarks of a Ponzi scheme.
Investigators say at least $5.9 million in investor payouts were funded with money from other investors, not business revenue. The suit also claims the pair diverted $16.1 million for personal use.
“Contrary to their representations, while some of the REV Retailer Brands generated revenue, none generated any profits,” the SEC filing stated.
Neither Mehr nor Lopez has publicly commented on the allegations.