RadioShack and Pier 1 buyers accused of running $112M Ponzi scheme by SEC in Miami fraud case

The Securities and Exchange Committee (SEC) accuses the men who bought Radioshack’s bankrupt chains, Modell sports commodities, and pavement Import 1 from the Ponzi chart that deceived investor from tens of millions of dollars.

A complaint submitted by the American District Court of the Southern Region in Florida on Tuesday claims the founders participating in the e -commerce headquarters in Miami, Alex Mehr and Tai Lopez, with the company’s chief operational employee Maya Burkenwood, raised nearly $ 112 million from hundreds of United States by selling fixed in eight companies they created in the field of retail trade.

Between April 2020 to November 2022, they raised money by selling two types of investments. They sold undesirable notes that promised returns up to 25 % a year, and the royal shares that submitted monthly payments of 2 %, according to the complaint.

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They also claimed that money will be used to purchase non -retail brands and finance operations, but SEC claims that Mehr and Lopez have misled investors about the success of companies.

The complaint of the promotional video was at least, available to the audience on the Internet, as Lopez described the Rev approach as “one of the best strategies that you can invest in.” The Securities and Stock Exchange Authority also said that she and Lopez confirmed that the investors confirmed that while other companies were struggling, their wallet companies were “burning” and that “the cash flow is strong.”

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A man is going through the front of the Radioshack store in the Chelsea neighborhood, March 9, 2017, in New York City. (Drew Angeler / Getty Images)

They assured the investors that the money collected for a specific portfolio company will be used for that specific company, and that the RV and ReV Retailer brands have never failed to pay one investor, and followed the complaint. However, SEC said that although some RIVs have achieved revenue, none of them achieve any profits.

To pay benefits, distributions and mature observations, Mehr and Lopez resorted to using a set of loans from external lenders, cash progress of traders, funds collected from new and current investors, and transfer from other portfolios companies to cover obligations, SEC said.

Bear 1 stores closed in Verfax, Virginia, on May 21, 2020. (Andrew Harr / Bloomberg via / Getty Images)

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Al -Shakawi said that at least $ 5.9 million of revenues distributed to investors were “Bonzi’s similar payments with funding from other investors.” MehR and Lopez were also accused of hiding about $ 16.1 million of investor money for their “personal use”.

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In total, ReV and relevant companies, including Dress Barn, Linen ‘N Things, Modell’s, Pier 1 and Radioshack, About $ 112 million of investors collected. When they failed to pay, the creditors took the brands and sold them to a new company, Omni Retail Enterprises, LLC.