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SEC sues fraudsters: REV-Ponzi scheme unveiled with $ 112 million!
US-SEC is suing Founders of Retail Ecommerce Ventures due to Ponzi scheme and fraudulent securities-$ 112 million.
SEC sues fraudsters: REV-Ponzi scheme unveiled with $ 112 million!
The US Securities and Exchange Commission (SEC) has filed a lawsuit against three people who are accused of having operated fraudulent securities and misuse of investor funds. The accused are Tino Lopez and Alexander more, co -founder of Retail Ecommerce Ventures LLC (REV), and the COO Maya Burkenroad. According to the SEC, the three from April 2020 to November 2022 are said to have collected around $ 112 million through supposedly fraudulent sales of securities from eight REP portfolio companies.
The companies concerned include well -known brands such as Brahms, Dress Barn, Franklin Mint, Linens' N Things, Model’s Sporting Goods Online, Pier 1 Imports, Radio Hack and Stein Mart. The SEC has found that the accused have sold unsecured bonds with promised annual returns of up to 25% and membership units, which offered monthly preferential dividends of up to 2.083%.
Misleading information and ponzi-like payments
A central accusation of the SEC is that the offers were sent to essential false information about the success and profitability of the business model and the security of the investments. Although some retail brands from REV received income, they were not profitable.
The SEC examinations showed that at least $ 5.9 million that were paid to investors were ponzi-like payments that were financed with funds from other investors. In order to maintain the appearance of a successful company, the accused paid promised returns to existing investors with new funds or funds from other REV-single trading stamps. This tactic sees the SEC as a classic case of fraud.
Abuse of investor funds
In addition, the accused were accused of abusing about $ 16.1 million in investor funds for personal purposes. This shows the extent of the fraudulent activities operated by López and more and BurkenRoad. The case is skillfully thrown into the dark side of e-commerce and the need for investors to be skeptical and to carry out thorough research before investing their funds.
The SEC has therefore dealt with the serious situation to protect investors and to restore confidence in the market. The legal steps against these three individuals are part of a more extensive approach to combat fraudulent activities in the financial sector.