A pair of flashy e-commerce entrepreneurs who bought bankrupt retail giants — including Pier 1 Imports, RadioShack, and Modell’s Sporting Goods — have been accused of running a $112 million Ponzi scheme, according to a new lawsuit.
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 the federal Southern District of Florida filing obtained by the Post
Mehr and Lopez were known for snatching up struggling brick-and-mortar brands and attempting to rebrand them as online-only shops.
Their business portfolio also includes Dress Barn, Modell’s Sporting Goods, and Stein Mart, the suit said.
Mehr — an Iranian-born immigrant who worked in “risk and safety management of NASA’s space exploration missions” — teamed up with Lopez at the height of the retail carnage in 2019 when nearly 10,000 stores went out of business, the Post previously reported.
Lopez is also a social media influencer who has written several self-help books, including his “67 Steps” on how to become “wealthy” that incorporate “teachings of powerful and famous people like Bill Gates, Charlie Munger, Peter Drucker, Gandhi, and my personal mentors.”
In one of their high-profile deals, REV acquired RadioShack in 2020, three years after the chain’s second bankruptcy.
They also picked up Modell’s assets and Pier 1 Imports in additional 2020 acquisitions of bankrupt companies.
The business-savvy pair allegedly made “material misrepresentations” to hundreds of investors about the brand’s performance between 2020 and 2022 — including claims that the companies were “on fire,” the SEC alleged.
They also allegedly made bogus promises to prospective investors that money raised for their companies would only be used to fund that specific firm, according to the lawsuit
“Contrary to these representations, while some of the REV Retailer Brands generated revenue, none generated any profits,” the lawsuit said.
“Consequently, in order to pay interest, dividends and maturing note payments, Defendants resorted to using a combination of loans from outside lenders, merchant cash advances, money raised from new and existing investors, and transfers from other portfolio companies to cover obligations,” the document continued.
At least $5.9 million or return payments to investors were actually Ponzi-like payments funded by other investors, rather than companies, the SEC said.
The agency also accused Mehr and Lopez of taking $16.1 million for personal use.
Neither Lopez nor Mehr immediately responded to a request for comment from The Post.
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