Buyers of RadioShack, Pier 1 Imports, and Other Brands Accused of $112 Million Ponzi Scheme Overview Two e-commerce entrepreneurs, Alex Mehr and Tai Lopez, founders of Miami-based Retail Ecommerce Ventures (REV), are accused by the U.S. Securities and Exchange Commission (SEC) of running a $112 million Ponzi scheme by defrauding investors after acquiring several well-known retail brands through bankruptcy. Brands Involved REV acquired several distressed brick-and-mortar retail brands: RadioShack (acquired in 2020; relaunched as an e-commerce platform by new owners Unicomer Group in 2024) Pier 1 Imports (declared bankruptcy in early 2020; REV acquired trademark/assets later that year) Modell's Sporting Goods (filed bankruptcy and closed stores in March 2020; REV bought trademark and assets in August 2020) Dress Barn Linens 'n Things Allegations by the SEC Mehr and Lopez made material misrepresentations to hundreds of investors between 2020 and 2022. Misrepresented the financial health by stating portfolio companies were "on fire" with strong cash flow. Investors were told funds would be used exclusively for the specific company they invested in, which was false. None of the portfolio companies generated profits; some generated revenue but not profits. To pay dividends, interest, and maturing notes, the defendants used a mix of new investor funds, loans, and transfers from other portfolio companies. At least $5.9 million in returns paid to investors came from new investor money, resembling Ponzi payments. Allegedly, around $16 million in investments were misused for personal benefit. Involvement of REV COO Maya Burkenroad Burkenroad, Lopez's cousin, was claimed to have over 10 years experience managing multimillion-dollar companies as per REV website. The SEC alleges her experience was misrepresented; her prior jobs included substitute preschool teacher and radio station promoter. Burkenroad is accused of aiding the alleged fraud. Status and Response The SEC lawsuit was filed in the U.S. District Court for the Southern District of Florida. No immediate response was received from Alex Mehr, Tai Lopez, or Maya Burkenroad. Additional Information Article updated September 26, 2025, by Megan Cerullo and edited by Anne Marie D. Lee at CBS News MoneyWatch. CBS News provides extensive coverage and related articles on current events accessible via their site. --- For further reading, visit CBS News MoneyWatch or the original article on CBS News.