Get the latest tech news
Buyers of Radio Shack, Pier 1 brands accused of running $112M Ponzi scheme
The buyers of distressed brick-and-mortar companies like RadioShack and Modell's Sporting Goods, are accused of running a Ponzi scheme.
A pair of e-commerce entrepreneurs who bought a number of well-known retail brands — including RadioShack, Modell's Sporting Goods and Pier 1 Imports — out of bankruptcy are accused of running a Ponzi scheme. The Securities and Exchange Commission on Monday accused Alex Mehr and Tai Lopez, founders of the Miami-based Retail Ecommerce Ventures (REV), of defrauding investors out of approximately $112 million. "Consequently, in order to pay interest, dividends and maturing note payments, Defendants resorted to using a combination of loans from outside lenders, merchant cash advances, money raised from new and existing investors, and transfers from other portfolio companies to cover obligations."
Or read this on Hacker News
