YouTuber Faces SEC Lawsuit Over Alleged $112 Million Ponzi Scheme
Taino Lopez, better known as Tai, a YouTuber who gained viral fame for flaunting his Lamborghini, has been accused by the US Securities and Exchange Commission of operating a massive Ponzi scheme. The civil lawsuit alleges that Lopez and his partners misled hundreds of mostly small investors, draining approximately $112 million through fraudulent securities offerings.
From Viral Meme to Alleged Financial Fraud
Lopez rose to prominence in 2015 when a video of him bragging about his book collection over his black Lamborghini became a viral meme. He built a following by selling get-rich-quick advice courses online, positioning himself as a financial guru. According to the SEC, this persona was used to lure investors into his company, Retail Ecommerce Ventures, which he co-founded with Alex Mehr.
The SEC claims that between 2019 and 2022, REV raised more than $230 million from investors. Lopez allegedly promised returns of at least 25 percent by acquiring struggling retail chains like RadioShack, Pier 1, and Modell's Sporting Goods and converting them into e-commerce platforms. However, the lawsuit states these brands were unprofitable, and funds were primarily used to pay earlier investors in classic Ponzi scheme fashion.
Investor Losses and Personal Misappropriation
Several investors have come forward with stories of significant financial loss. Sean Murphy, an Illinois grandfather, invested $175,000 and told The Wall Street Journal he received only a $10,000 Pier 1 gift card and monthly checks of about $1,000 for two years before payments stopped. 'These guys lied. They conspired. They led people on,' Murphy said.
Nelson Rowe, an 82-year-old retired real-estate broker, invested $300,000, stating 'Lopez seemed credible. The story sounded so good. They had all these brands.' The SEC further alleges that Lopez and Mehr misappropriated roughly $16.1 million of investor funds for personal use rather than business investments.
SEC Action and Ongoing Investigations
The SEC's complaint, filed on September 25, seeks permanent injunctions, civil penalties, officer-and-director bars against all defendants, and disgorgement with prejudgment interest from Lopez and Mehr. While Lopez faces no criminal charges currently, the FBI has reportedly contacted investors as part of a separate investigation.
Lopez has not publicly addressed the allegations directly. The day after the lawsuit was filed, he posted an ambiguous message on social media: 'Never doom. No matter how horrible the situation, don't ever think you're doomed. Unless you are dead, all defeat is psychological.' The defendants are attempting to settle with the SEC as the case proceeds.
Broader Implications and Investor Warnings
This case highlights risks associated with influencer-led investment schemes and the allure of high-return promises. Investors were reportedly enticed during meetings where Lopez urged them to 'Give us as much money as you can. These deals are poppin' off, and we can't get them fast enough,' according to attendee Joseph Bertao.
The SEC's action serves as a stark reminder for investors to exercise caution, particularly with opportunities promoted through social media platforms. Regulatory scrutiny of such schemes is likely to intensify following this high-profile allegation against a once-viral internet personality.
