YouTuber Accused of Recruiting Hundreds Into Ponzi Scheme

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The Wall Street Journal profiles Taino "Tai" Lopez, a YouTuber known for his "here in my garage" videos and paid courses on getting rich, who is accused of running a massive Ponzi scheme. Lopez allegedly raised over $230 million from hundreds of mostly small investors to fund a plan to rescue faded retail names like RadioShack, Pier 1 Imports, and Dressbarn and turn them into online success stories. However, the SEC claims that around $112 million of that money was raised through fraudulent securities offerings.

Why it matters

This case highlights the risks of investing in unregulated schemes promoted by social media influencers, as well as the ongoing challenges of protecting vulnerable retail investors from financial fraud.

The details

According to the SEC lawsuit, Lopez and his business partner recruited hundreds of investors, many of them small investors, to fund their plan to revive struggling retail brands through online sales. However, the SEC alleges that a significant portion of the $230 million raised was not actually used for that purpose, but instead diverted into a Ponzi scheme to pay fake "returns" to earlier investors.

• The SEC filed a civil lawsuit against Lopez and his business partner in February 2026.

What’s next

The SEC lawsuit is ongoing, and the outcome will determine whether Lopez and his business partner face criminal charges or other penalties.