California Mexican Chain Accused of Ponzi Scheme

Roll-Em-Up Taquitos faces lawsuits over alleged shady business practices.

Apr. 18, 2026 at 12:38am

Got story updates? Submit your updates here. ›

A high-end, photorealistic studio still-life photograph featuring a stack of frozen taquitos in plain packaging, a crumpled receipt, and a set of car keys on a plain white background, conceptually representing the abstract corporate strategy and financial risks behind the alleged Ponzi scheme.A conceptual still life captures the financial irregularities and corporate deception alleged in the lawsuit against the Mexican restaurant chain.Riverside Today

The California-based fast casual Mexican restaurant chain Roll-Em-Up Taquitos is facing accusations that its business is a 'Ponzi scheme' and that the company's CEO defaulted on a $415,000 Ferrari purchased in the company's name. The chain, which has 14 locations mostly in California, has been sued by a group of franchisees who claim the company used money from franchisees to fund itself and recruit additional franchisees.

Why it matters

The allegations against Roll-Em-Up Taquitos raise concerns about the integrity of the franchise model and highlight the risks that franchisees can face when investing in a new business. The case also underscores the importance of thorough due diligence when considering any franchise opportunity.

The details

According to the report, the lawsuit filed in Riverside County claims that Roll-Em-Up Taquitos' signature dish, 'Mama Karen's' taquitos, were not the high-quality, fresh-delivered product advertised, but rather 'clearly frozen from questionable supplies' and in some cases made not in a commercial kitchen but at a person's private home. The company has denied the allegations in a statement.

  • The lawsuit was filed in 2025.
  • Roll-Em-Up Taquitos was founded in Chino Hills, California in 2019.
  • The company began partnering with franchisees to open additional locations in 2021.

The players

Roll-Em-Up Taquitos

A California-based fast casual Mexican restaurant chain that has faced numerous lawsuits over its business practices.

Roll-Em-Up Taquitos spokesperson

A representative for the company who denied the allegations in a statement.

Got photos? Submit your photos here. ›

What they’re saying

“The company used money from franchisees to fund itself and recruit additional franchisees.”

— Franchisees, Plaintiffs in lawsuit

What’s next

The lawsuit is ongoing, and the court will need to determine whether the allegations against Roll-Em-Up Taquitos have merit.

The takeaway

The case against Roll-Em-Up Taquitos highlights the importance of thorough research and due diligence when considering franchise opportunities, as franchisees can face significant risks if a company engages in deceptive or unethical business practices.