SEC Alleges REV Co-Founders Lopez and Mehr Ran $112M Fraud Scheme
Taino Lopez and Alexander Mehr, co-founders of Retail Ecommerce Ventures (REV), have been accused of running a fraudulent scheme. The U.S. Securities and Exchange Commission (SEC) alleges that they misrepresented the financial health of their brands and misappropriated investor funds for personal use.
REV, which operated from 2020 to 2024, raised approximately $112 million through deceptive means. The company claimed to be profitable and offered securities for sale, but the SEC alleges that REV was a Ponzi scheme-like business. REV's portfolio companies, including Dress Barn and Stein Mart, incurred monthly net losses ranging from $3.8 million to $12 million.
Lopez and Mehr, along with COO Maya Burkenroad, are named in the lawsuit. They are accused of misrepresenting the profitability of their brands and using about $16.1 million of investor money for personal expenses. Lopez, who sells online courses on social media, recently posted about taking action and facing judgment, which has since been interpreted in a new light.
The SEC's allegations highlight the importance of thorough due diligence before investing. REV's collapse in 2024 serves as a reminder of the risks associated with fraudulent schemes. Lopez and Mehr's actions are under investigation, and the outcome will determine the future of those affected by their alleged misconduct.
Read also:
- Germany's Social Workers in High Demand Despite Salary Disparities
- Minimal Essential Synthetic Intelligences Enterprise: Essential Minimum Agents
- Tesla is reportedly staying away from the solid-state battery trend, as suggested by indications from CATL and Panasonic.
- UK automaker, Jaguar Land Rover, to commit £500 million for electric vehicle manufacturing in Merseyside
