As a marketer, I’ve known about Tai Lopez for years. I never bought into his 67 Steps or any of his programs, but like many people, I’ve watched his videos. Some fascinated me, some made me roll my eyes.
I still remember that viral garage video around 2014—Lopez standing next to a Lamborghini, telling millions of viewers that the real key to wealth wasn’t the car but the books behind him. That video catapulted him into internet stardom. For some, it was inspiring. For others, it was proof he was a scammer. Either way, it cemented his brand: the flashy entrepreneur who sold success, who promised that knowledge plus hustle could buy the life he was living.
Now, he’s facing a problem I know all too well. Over the weekend I read that the Securities and Exchange Commission (SEC) filed charges accusing Lopez and his partners of running a $112 million Ponzi scheme.
What the SEC Says About Tai Lopez and his Partners
According to the SEC, Lopez, Alex Mehr, and Maya Burkenroad raised more than $100 million through Retail Ecommerce Ventures (REV). The pitch was simple: buy nostalgic but failing retail brands like RadioShack and Pier 1 Imports, move them online, and make them profitable.
The SEC tells a different story:
- The businesses weren’t profitable.
- Investor money was misused.
- New money paid off earlier investors—a Ponzi structure.
- Millions were allegedly diverted for personal use.
Why This Hits Close for Me: My Own Experience With The SEC
My own case began the same way—with a civil inquiry. Investigators Bob Tesoro and Cindy Nixon in Los Angeles started with questions, and before long, it escalated to the Department of Justice (DOJ). That civil-to-criminal shift is real, and it’s what Lopez now has to fear most.
When you hear numbers like $112 million, referral to the DOJ is more than possible—it’s likely. And when it turns criminal, the stakes move from fines and bans to indictments and prison.
Civil, Not Criminal—Yet
Right now, these are civil charges. That means Lopez faces:
- Asset freezes and injunctions
- Disgorgement and restitution
- Fines and penalties
- Potential bans from running companies
But civil doesn’t guarantee safety. The SEC can’t jail you, but the DOJ can. And with numbers this big, history shows that civil cases often become criminal ones.
What Happens Next For Tai Lopez?
Lopez and his partners have choices:
- Say nothing and hope silence limits exposure.
- Fight it out through discovery and depositions.
- Settle early to cut losses, without admitting wrongdoing.
Behind the scenes, I imagine asset freezes are already hitting. And I wouldn’t be surprised if regulators are already looking into his crypto holdings. If he’s sitting on cold storage wallets with Bitcoin or Ethereum, it’ll be a battle over what the government can actually trace.
The Cost Beyond the Courtroom
The reputational damage is instant. People who once admired him are piling on. The prison jokes are everywhere—LinkedIn, Instagram, Facebook. That’s the reality of flaunting wealth: when you fall, people take pleasure in it.
I know what that feels like. When you’re the one in the headlines, the assumption is guilt. But I’ve also worked with plenty of people who were charged unfairly. The presumption of innocence doesn’t protect you from the presumption of public ridicule.
Lessons for Entrepreneurs
- Don’t overstate what you can deliver.
- Keep investor money separate and documented.
- Understand that hype sells online but raises red flags with regulators.
- Remember: flaunting cars, houses, and women might draw followers, but it also draws prosecutors.
Could DOJ Step In?
Yes. The SEC can refer their findings to the DOJ if they see willful fraud. That’s what happened in my case. That’s what happened to Elizabeth Holmes. That’s what happened to Jordan Belfort.
Civil cases often start the story. Criminal cases end it.
Final Thoughts
I never bought into Lopez’s 67 Steps, but I respected his ability to market. Some of his content was witty, even funny. But the lifestyle—the cars, the houses, the constant flaunting—was always going to be dangerous if regulators ever came knocking.
Right now, Lopez is in the same position I once was: deciding what to say, what to hide, what to fight. His next moves could determine whether this stays civil—or becomes criminal.
Justin Paperny
