The Securities and Exchange Commission (SEC) has filed a lawsuit accusing Taino Lopez and Alexander Mehr, the founders of Retail Ecommerce Ventures (REV), of orchestrating a $112 million Ponzi-style scheme. REV, known for acquiring struggling retailers like RadioShack, Modell's Sporting Goods and Pier 1 Imports, allegedly defrauded investors by misrepresenting the profitability of these brands.
The Allegations
The SEC's complaint, filed in a Florida federal court, claims that from 2020 to 2022, Lopez and Mehr misled investors about the financial success of the retailers REV acquired. These acquisitions included well-known names such as RadioShack, Modell's Sporting Goods, Pier 1 Imports and Stein Mart, many of which were converted into online-only operations.
The SEC contends that these businesses failed to generate profits, and REV relied on external loans, merchant cash advances and funds from new and existing investors to meet its financial obligations.
Furthermore, the lawsuit accuses Lopez and Mehr of personally misusing approximately $16 million of investor funds. The SEC is pursuing civil penalties, the return of illicit gains and is seeking to prevent Lopez, Mehr and REV COO Maya Rose Burkenroad from holding officer or director positions in any public company.
Financial Troubles and Brand Ownership
Hints of REV's financial difficulties have surfaced since 2023, when secured creditors began foreclosing on its assets. Most of these assets were subsequently transferred to a new holding company, Omni Retail Enterprises.
REV's past ventures included the acquisition of UK brand Ralph & Russo in July 2021 and a $32 million investment in Tuesday Morning in September 2022.
However, the current owner of RadioShack, Grupo Unicomer, is entirely separate from REV and its executives. Grupo Unicomer, a multinational retail and financial services company, has a long-standing relationship with RadioShack, having been a franchisee since 1998 and acquiring significant brand assets in 2015 and 2023.
Unicomer relaunched the RadioShack brand in the U.S. market in 2024, and has no business, legal, financial or operational ties to the defendants or their company.
