The U.S. Securities and Exchange Commission (SEC) has accused Tai Lopez, co-founder of Retail Ecommerce Ventures (REV), of orchestrating a $112 million Ponzi-style fraud. The SEC has filed a suit in the U.S. District Court for the Southern District of Florida against Lopez and Alex Mehr. According to the complaint, the duo raised funds from hundreds of investors from about 2020 through 2022, touting distressed retail brand turnarounds as lucrative opportunities.
REV, based in Miami, had acquired a string of bankrupt retailer brands, including RadioShack, Pier 1 Imports, Modell’s Sporting Goods, Dressbarn, Stein Mart, and Linens ’n Things. The idea was to take over and relaunch them as profitable, digital-first enterprises.
Personal gains & misleading claims
According to a WSJ report, the SEC has alleged that Lopez and Mehr misrepresented their financial performance, claimed that the portfolio companies were “on fire” and generating a strong cash flow, which was far from the truth. They promised that funds invested in a particular brand would be used exclusively for that brand. But in reality, none of the brands delivered profits.
To meet investor payout obligations like interest, dividends, matured notes, etc., the defendants allegedly relied on funds from new or existing investors, external loans, and transfers among the portfolio companies, a classic Ponzi scheme mechanism. The SEC claims at least $5.9 million in “returns” were actually paid from incoming investor money, not real business profits. In addition, the complaint alleges $16.1 million was diverted for personal use by Lopez and Mehr.
The case came to light only in September 2025 after an SEC filing was made public. However, investor complaints and warnings had been bubbling for years, as early as 2023. Investor rights law firms were investigating REV for failing to allow withdrawals, missing dividend payments, and operations that appeared to be struggling.
Who is Tai Lopez?
Tai Lopez is a social media entrepreneur and self-help influencer who built a brand around personal development, investing, and online education. He gained fame through viral video ads promoting courses and coaching. Later, he pivoted into retail and e-commerce investments, partnering with Mehr to launch REV and acquire distressed retail brands.
Now that the SEC has brought civil charges, Lopez, Mehr, and possibly other executives will have to respond to the complaint, file motions to dismiss or narrow claims, and engage in depositions. If the SEC prevails, Lopez could be ordered to pay civil fines, return misused funds, and be barred from acting as an officer or director of public companies.