Investors spent $112 million to fund online rebirth of RadioShack, Pier 1 Imports and others. It was fraud, SEC says.

"In a complaint filed in U.S. District Court in Miami, the Securities and Exchange Commission on Thursday charged co-founders of Retail Ecommerce Ventures LLC with carrying out fraudulent securities offerings, misusing investor funds and making Ponzi-like payments to investors. According to the SEC complaint, the company's primary business was to purchase distressed but recognizable retail companies and convert them into online-only operations."

"Hundreds of investors put up approximately $112 million thinking they were funding a return to the marketplace of eight companies with updated names, the SEC said. Those companies, the complaint states, included Pier 1 Imports Online Inc., Stein Mart Online LLC, Linens 'N Things Online Inc., RadioShack Online LLC, Franklin Mint Online LLC, Modell's Sporting Goods Online Inc., Dress Barn Online LLC, and Brahms LLC."

"The SEC's complaint alleges that prior to that, between April 2020 and November 2022, Retail Ecommerce Ventures co-founders Taino Lopez and Alexander Mehr and its chief operating officer Maya Burkenroad sold unsecured notes that promised profits of up to 25% a year and a monthly dividend as high as 2.1%. A story in the New York Post identified Mehr and Lopez as "a pair of flashy e-commerce entrepreneurs" who made "high-profile deals." Efforts to reach company officials were unsuccessful. The only three companies registered by Lopez and Mehr with the Florida Division of Corporations are listed as inactive and the U.S. District Court's website does not yet list any defense attorneys in the case."

The Securities and Exchange Commission charged Retail Ecommerce Ventures co-founders Taino Lopez and Alexander Mehr and chief operating officer Maya Burkenroad with fraudulent securities offerings, misusing investor funds, and making Ponzi-like payments. The company acquired distressed but recognizable retail brands and converted them into online-only operations. Hundreds of investors contributed roughly $112 million to back the relaunches of eight renamed companies, including Pier 1, Stein Mart, Linens 'N Things, RadioShack, Franklin Mint, Modell's, Dress Barn and Brahms. The defendants sold unsecured notes promising up to 25% annual returns and monthly dividends as high as 2.1%. Creditors took control of company assets in 2023 and seven brands now operate under creditor ownership. Company registrations are listed inactive and company officials have been unreachable.

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