Litigation Releases (Taino Adrian Lopez, Alexander Farhang Mehr, and Maya Rose Burkenroad)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26413 / September 25, 2025

Securities and Exchange Commission v. Taino Adrian Lopez, et. al.,

No. 1:25-cv-24356 (S.D. Fla. filed [Mo. Day, 2025)

SEC Charges Co-Founders and COO of Florida Holding Company with Misappropriating Investor Money and Operating a Ponzi Scheme

On September 25, 2025, the Securities and Exchange Commission charged Taino Lopez and Alexander Mehr, co-founders of Retail Ecommerce Ventures LLC ("REV"), and its Chief Operating Officer, Maya Burkenroad (collectively, "Defendants"), with conducting a series of fraudulent securities offerings, misusing investor funds, and making Ponzi-like payments to investors.

According to the SEC's complaint, REV's primary business was purchasing distressed retail companies with name brand recognition and converting them into e-commerce only businesses, and serving as the holding company and manager of the REV retailer brands. From approximately April 2020 through November 2022, the Defendants raised approximately $112 million from hundreds of investors through fraudulent offerings in eight REV portfolio companies, including Pier 1 Imports Online, Inc., Dress Barn Online, LLC, Linens 'N Things Online, Inc., and RadioShack Online, LLC (the "REV Retailer Brands"). The complaint alleges that the Defendants sold securities in the form of unsecured notes promising up to 25% annualized returns, as well as equity (membership units) with a monthly preferential dividend as high as 2.083%. The purported purpose of the offerings was to raise capital to acquire the predecessor of and raise additional operating capital for each particular REV Retailer Brand. However, according to the complaint, Lopez and Mehr made material misstatements in connection with these offerings about the success and profitability of REV's business model and the REV Retailer Brands, as well as the safety of investors' investments. The complaint further alleges that Defendants transferred at least $5.9 million in investor proceeds directly between portfolio companies, contrary to the written and oral representations made to investors about the use of proceeds; that at least $5.9 million of the returns distributed to investors were, in reality, Ponzi-like payments funded by other investors; and that Defendants misappropriated approximately $16.1 million in investor funds for Lopez's and Mehr's personal use.

The SEC's complaint, filed in the U.S. District Court for the Southern District of Florida, charges defendants Lopez and Mehr with 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 complaint also charges defendant Burkenroad with violations of Sections 17(a)(1) and (3) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) thereunder. Finally, the complaint charges Burkenroad with aiding and abetting Lopez's and Mehr's violations of Section 17(a)(2) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder. The complaint seeks permanent injunctions, civil penalties, and officer-and-director bars as to each Defendant. In addition, the complaint seeks disgorgement and prejudgment interest as to Lopez and Mehr.

The SEC's investigation was conducted by Brian Theophilus James, and supervised by Sean M. O'Neill and Glenn S. Gordon with the assistance of Fernado Torres, all of the Miami Regional Office. The SEC's litigation will be led by Alise Johnson and Russell Koonin and supervised by Teresa J. Verges, also of the Miami Regional Office.

[Include link to complaint]