A YouTuber who went viral for bragging about his Lamborghini has been accused of running a $112million Ponzi scheme that allegedly drained mostly small investors.
Taino Lopez, better known as Tai, rose to fame selling get-rich-quick advice courses and, notably, became a viral meme in 2015 for saying he preferred his book collection to his black Lamborghini, which he was obviously flaunting.
The US Securities and Exchange Commission (SEC) has filed a civil lawsuit against the 48-year-old, accusing him and his partners of misleading investors through fraudulent securities offerings.
Lopez’s company, Retail Ecommerce Ventures (REV), which he co-founded with Alex Mehr, raised more than $230million from hundreds of mostly small investors between 2019 and 2022, officials claim. Lopez’s younger cousin, Maya Burkenroad, who was his chief operating officer, was also named in the lawsuit.
The YouTuber lured investors in under the alleged facade that his company would provide at least 25 percent returns by acquiring struggling chains such as RaidoShack, Pier 1, and Modell’s Sporting Goods and converting them into e-commerce platforms.
According to the lawsuit, the brands were unprofitable, and the funds were used to pay earlier investors.
‘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 against Lopez and Mehr, the filing noted.
Some investors were also promised equity stakes with monthly dividends of more than two percent.
Taino Lopez, better known as Tai, is accused by the US Securities and Exchange Commission (SEC) of misleading investors through fraudulent securities offerings
The SEC claims the 48-year-old ran a $112million Ponzi scheme that allegedly drained mostly small investors
Sean Murphy, an Illinois grandfather who invested $175,000 into Lopez’s company, told The Wall Street Journal, ‘These guys lied,’ after all he received was a $10,000 Pier 1 gift card and monthly checks of about $1,000 for about two years.
‘They conspired. They led people on,’ added Murphy.
In addition, the SEC claimed that Lopez and Mehr misappropriated roughly $16.1million of funds for personal use rather than investing it in the business.
However, Lopez has not publicly addressed the SEC’s allegations, only making an ambiguous post the day after the lawsuit was filed on September 25: ‘Never doom. No matter how horrible the situation, don’t ever think you’re doomed. Unless you are dead, all defeat is psychological.’
Lopez is not facing criminal charges, but the FBI has reportedly contacted investors as part of a separate investigation, the Wall Street Journal reported.
The defendants are attempting to settle with the SEC as the case continues.
‘Lopez seemed credible,’ said Nelson Rowe, an 82-year-old retired real-estate broker who invested $300,000, according to the Journal.
Lopez rose to fame selling get-rich-quick advice courses and, notably, became a viral meme in 2015 for saying he preferred his book collection to his black Lamborghini, which he was obviously flaunting.
‘The story sounded so good. They had all these brands.’
According to the outlet Lopez Seminars, he often promised to share his success with those who invested in his company.
The YouTuber would also hold investor meetings where Joseph Bertao, a 44-year-old who works in construction sales, recalled Lopez saying: ‘Give us as much money as you can. These deals are poppin’ off, and we can’t get them fast enough.’
The Daily Mail has reached out to Lopez for comment.
