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Posted on 09/28/2025 11:17:11 AM PDT by Libloather
The Securities and Exchange Commission (SEC) is accusing the men who bought bankrupt chains RadioShack, Modell’s Sporting Goods, and Pier 1 Imports of running a Ponzi scheme that duped investors out of tens of millions of dollars.
A complaint filed in the U.S. District Court for the Southern District of Florida on Tuesday, alleges the co-founders of Miami-based Retail Ecommerce Ventures, Alex Mehr and Tai Lopez, together with the company's Chief Operating Officer Maya Burkenroad, raised approximately $112 million combined from hundreds of U.S. investors by selling investments in eight companies they created and controlled under Retail Ecommerce Ventures.
Between April 2020 through Nov. 2022, they raised money by selling two types of investments. They sold unsecured notes that promised returns of up to 25% a year, and ownership shares that offered monthly payouts as high as 2%, according to the complaint.
They also claimed that the money would be used to buy struggling retail brands and to fund operations, but the SEC alleges Mehr and Lopez misled investors about how well the businesses were actually doing.
The complaint cited at least one promotional video, publicly available on the internet, where Lopez touted REV’s approach as "one of the best strategies you can invest in." The SEC also said that she and Lopez further assured investors that while other businesses were struggling, their portfolio companies were "on fire" and that "cash flow is strong."
They assured investors that funds raised for a specific portfolio company would be used for that specific company, and that REV and the REV Retailer Brands have never failed to pay a single investor, the complaint continued. However, the SEC said that while some of the REV Retailer Brands generated revenue, none of them generated any profits.
To pay interest, dividends and maturing note payments...
(Excerpt) Read more at foxbusiness.com ...
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What is amazing is the market for brand images, tradenames, etc., after a business implodes. I knew someone who developed a substantial business importing bicycles manufactured in China, starting in the 1980s. They were cheap knock-offs, poor imitations of typical bicycle manufacturing brands in the US. His firm ultimately purchased the Schwinn brand trademark from the bankruptcy estate, or possibly from someone who had acquired it from the estate, and they now import inexpensive bikes sold under the Schwinn brand. I think you see them at Target and other mass retailers. Just junk compared to what was made back in the day by the original Schwinn folks. But these trade names often sit on the shelf after a bankruptcy and get traded and then exploited many years later, and they apparently fool some who recall the original brand essence.
Then you have the Ponzi aspect - what scammers look for are affinity groupings that they can exploit. Religious membership, hobby or sports interests, etc. Some alignment with the potential victim that conveys trustworthiness, even though it should have no such connotation. We had a neighbor who was proven to be a Ponzi schemer, and he exploited Irish heritage, horse racing, and golf as affinity connections to potential victims. He and his business partner took in ~$136M in “investments”, and when it collapsed, and in the 15 years since he was arrested, the receiver only recovered enough that the sentences they received included $99.5M in restitution. He bought memberships in famous country clubs around the world so he could invite potential victims to play at “his” club (St. Andrews, etc.). He insinuated himself into the thoroughbred owners association in upstate NY so he could meet people who owned and raced horses (a well-heeled source of victims). The simple and flawed chain of logic (”He must be ok, he belongs to my church/country club/etc.”) has led to a lot of investor heartburn.
Ponzi schemes in the investment world pry on investors that refuse to to their own due diligence, or refuse to do it well. There was probably very little in the backgrounds of the leaders of these recent ponzi schemes that evidenced cause for the trust they asked for.
Yes, I shopped Fry’s. I don’t tinker much anymore but people who do need sometimes need a brick & mortar store.
“””If you liked Heath kits, you would have LOVED Lafayette Electronics.”””
As a kid I would go to Schaak Electronics for that stuff.
Photo.....
An electronic brain.
Gave people goosebumps to see the science fictional future was here. 🪐🌌
Agree.
I was introduced to Fry’s on a trip to Las Vegas. The store had a slot machine facade on the front of the building.
https://www.youtube.com/watch?v=ESjwBQvA4a8
Start at about 2:10, unless you want to listen to 2:09 minutes of blah, blah, blah, and airplanes approaching McCarran.
Few knew the origin of the name when the company was started.
“In World War II a radio shack was a vital communication hub for military and clandestine operations, typically staffed by a radio operator using Morse code, voice, and teletype. The capabilities, size, and equipment varied widely depending on whether the shack was on a ship, in the field, or operating secretly behind enemy lines. “
“”Me too. I taught physics for many years. And sometimes I would need a specific resistor for a demonstration, let’s say a 5 ohm one.””””
I recall an electronics class in junior high. We had to memorize the colors on resistors to determine the resistance. Black brown red orange yellow green blue violet gray white silver gold. I can remember that from over 50 years ago. I have to think about what my phone number is today.
I had to look them up. Yes Lafayette would have been great here in SoCal. We had Fry’s but Fry’s was a huge store more like the back of Radio Shack where all the components would be.
There was always this...
“Bad Boys Rape Our Young Girls, But Violet Gives Willingly”
0123456789 (black, brown, red, orange, yellow, green, blue, violet, gray, white).
Check it was a good receiver had one in the 70’s.
My dad built a Heathkit television, took him about two years, but he finally got it done.
also found out about Fry’s on a trip to Vegas. Not too far from the airport.
me too
My dad built a nice amplifier for the family, and a shotwave radio for me.
My dad built a nice amplifier for the family, and a shotwave radio for me.
> Ponzi schemes in the investment world pry on investors that refuse to to their own due diligence… <
Risk = Reward.
If investors would just understand that rule of thumb, they’d be able to avoid most of the scams out there. The greater the reward you’re expecting, the more risk you’re taking.
And now for one more rule of thumb:
Time lessens risk.
For example, a stock mutual fund is risky. But hold it long enough (maybe 10 years), and you have minimized your risk.
Disclaimer: Warren Buffett has never called me for advice. So what do I know?
Agreed. The Schwinn story pulls at me from my youth. My dad would get excited when he saw the Bell and Howell trademark being promoted on something, usually junk.
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