Executives of a portfolio company that managed well-known bankrupt retail chains have been accused by federal regulators of lying to investors and costing them millions.

The Securities and Exchange Commission filed a lawsuit against Retail Ecommerce Ventures co-founders Alex Mehr and Tai Lopez, plus Chief Operating Officer Maya Burkenroad, alleging they misled hundreds of investors while raking in $112M and buying large, bankrupt retail brands.

The complaint was filed Tuesday in the U.S. District Court for the Southern District of Florida.

Mehr and Lopez bought well-known companies, including RadioShack, Modell's Sporting Goods and Pier 1 Imports, out of bankruptcy, assuring investors that their portfolio companies were "on fire" and "cash flow is strong," Fox Business reported.

The lawsuit says the three raised money by selling unsecured notes with promised returns of up to 25% per year and ownership shares with monthly payouts as high as 2% between April 2020 and November 2022.

Of the funds paid to investors, the SEC characterized roughly $6M as "Ponzi-like payments" because they were allegedly funded by other investors. The federal agency also accused the trio of misappropriating $16M in investor funds for personal use.

The complaint seeks civil penalties, disgorgement of ill-gotten gains and a ban on the defendants from serving as officers of any public company.

The retail companies weren't profitable, and the company allegedly used loans, cash advances and fundraising from new and existing investors to cover obligations. The company's secured creditors foreclosed on its assets in 2023 and REV dissolved, with assets being assigned to a new holding company, Omni Retail Enterprises, The Wall Street Journal reported.

The company's portfolio also included brands like Dressbarn, Stein Mart and Linens ’N Things.