U.S. Securities and Exchange Commission Litigation Release No. 26413, dated September 25, 2025.
The SEC charged the co-founders and COO of Retail Ecommerce Ventures LLC (REV) with running a fraudulent scheme. They allegedly raised $112 million from investors by making false promises about the success of their e-commerce businesses. Instead of using the funds as promised, they misappropriated millions for personal use and used new investor money to pay off earlier investors, operating a Ponzi scheme.
In Plain English
Imagine you start a business that buys old stores and makes them online-only. You tell people you need money to fix up these stores and promise them big returns, like 25% a year. But instead of using the money for the stores, you take a lot of it for yourself. You also use money from new people you convince to invest to pay back the earlier investors, like a game of musical chairs where the last ones lose. The SEC says this is a scam, and they are suing the people in charge.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Forming the Holding Company Taino Lopez and Alexander Mehr co-founded Retail Ecommerce Ventures LLC (REV) to buy distressed retail companies and convert them into e-commerce businesses. REV acted as the holding company and manager for these brands.
- Acquiring Distressed Brands REV acquired or controlled eight portfolio companies, including well-known names like Pier 1 Imports Online, Inc., Dress Barn Online, LLC, Linens ‘N Things Online, Inc., and RadioShack Online, LLC, rebranding them as REV Retailer Brands.
- Soliciting Investor Funds From April 2020 to November 2022, the defendants raised approximately $112 million from hundreds of investors through fraudulent offerings for these REV Retailer Brands.
- Making False Promises Investors were offered unsecured notes promising up to 25% annualized returns and equity with monthly dividends as high as 2.083%. Defendants like Lopez touted REV's approach as 'one of the best strategies you can invest in' and claimed portfolio companies were 'on fire' with 'strong cash flow'.
- Misrepresenting Use of Proceeds Defendants assured investors that funds raised for a specific company would be used for that company. However, they allegedly transferred at least $5.9 million in investor proceeds directly between portfolio companies, contrary to these representations.
- Operating a Ponzi Scheme Because the REV Retailer Brands generated no profits, defendants used a combination of loans, merchant cash advances, new investor money, and transfers from other portfolio companies to meet obligations. At least $5.9 million of investor returns were Ponzi-like payments funded by other investors.
- Misappropriating Investor Funds In addition to the Ponzi-like payments, defendants allegedly misappropriated approximately $16.1 million in investor funds, diverting them for their personal use.
- Concealing the Truth Defendants made material misstatements and omissions about the success and profitability of REV's business model and the REV Retailer Brands, and assured investors that REV had never failed to pay an investor.
The Enforcement Action
On September 25, 2025, the SEC charged Taino Adrian Lopez, Alexander Farhang Mehr, and Maya Rose Burkenroad in the U.S. District Court for the Southern District of Florida. The complaint alleges violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, civil penalties, officer-and-director bars, and disgorgement with prejudgment interest as to Lopez and Mehr.