TL;DR: The SEC has filed a civil lawsuit against Tai Lopez, Alex Mehr and and Maya Rose Burkenroad for allegedly defrauding investors out of $112 million through a Ponzi-style scheme involving failed retail brands like RadioShack and Pier 1. They allegedly misused $16 million for personal luxury expenses and misled investors with false profitability claims.
What Happened
- The SEC filed a lawsuit on September 25, 2025, accusing Taino Adrian Lopez, Alexander Farhang Mehr, and Maya Rose Burkenroad of defrauding investors through Retail Ecommerce Ventures (REV).
- Between 2020 and 2022, they allegedly raised $112 million by misleading hundreds of investors about the profitability of distressed brands like RadioShack, Pier 1 Imports, and Stein Mart.
- The SEC claims the scheme involved Ponzi-like tactics, using funds from new investors to pay early investors, rather than generating actual profits.
Key Allegations
- False Promises: Lopez and Mehr allegedly claimed REV brands were "on fire" with "strong cash flow", despite ongoing financial losses.
- Fabricated Credentials: Burkenroad was promoted as a seasoned executive but was actually Lopez’s cousin and former assistant.
- Misuse of Funds: At least $5.9 million in investor “returns” came from other investors’ money, not from business earnings.
- Personal Spending: Lopez and Mehr allegedly misappropriated $16.1 million for private jets, yachts, real estate, and personal use.
Legal and Financial Context
- The SEC seeks:
- Permanent officer/director bans.
- Disgorgement of gains and interest.
- Civil penalties.
- This is a civil case, but criminal charges could follow from the DOJ.
- As of September 28, 2025, no official comment has been made by Lopez, Mehr, or Burkenroad.
Background
- Tai Lopez, known for his viral "Lamborghini" video and online courses, co-founded REV in 2020 to acquire bankrupt retail chains and shift them to e-commerce.
- REV raised $230 million total, acquiring brands such as:
- RadioShack (2020)
- Pier 1 Imports (2020)
- Dressbarn (2020)
- Stein Mart (2020)
- Modell’s (2021)
- The SEC says none of these brands became profitable.
Public Reaction
- News broke on September 26–27, 2025, generating high engagement online.
- No official responses have been issued by the accused parties.
- Whistleblower reports have emerged but remain unconfirmed.