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A YouTuber known for his flashy displays of wealth, including a Lamborghini, is now facing serious legal accusations. Taino Lopez, who gained fame through his self-help courses aimed at quick financial success, is alleged to have orchestrated a $112 million Ponzi scheme primarily targeting small-scale investors.
Lopez, more commonly referred to as Tai, captured the internet’s attention in 2015 when he humorously claimed he valued his extensive book collection over his Lamborghini, a statement that quickly became a meme. However, the U.S. Securities and Exchange Commission (SEC) has recently taken legal action against the 48-year-old, accusing him and his associates of defrauding investors through deceptive securities offerings.
The SEC’s civil lawsuit cites Lopez’s company, Retail Ecommerce Ventures (REV), which he co-founded with Alex Mehr. Between 2019 and 2022, the company reportedly amassed over $230 million from hundreds of primarily small investors. The legal filing also includes Lopez’s cousin, Maya Burkenroad, who served as the chief operating officer.
The allegations suggest that Lopez enticed investors with promises of at least 25 percent returns. He purportedly claimed these profits would come from revitalizing struggling retail brands like RadioShack, Pier 1, and Modell’s Sporting Goods by transforming them into online shopping platforms.
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.