Mexican Restaurant Chain Accused Of Being 'Ponzi Scheme' In CA: Report

Roll-Em-Up Taquitos, a California-based Mexican restaurant chain, is facing accusations that its business is in fact a "Ponzi scheme" and its CEO defaulted on a $415,000 Ferrari purchased in the company's name, according to a report.

Founded in Chino Hills in 2019, the fast casual chain began partnering with franchisees to open additional locations in 2021. It now has 14 locations, the vast majority in California, SFGATE reported.

The company has faced numerous lawsuits accusing it of shady business practices.

That includes a 2025 suit filed in Riverside County by a group of franchisees accusing the company of being a “Ponzi scheme masked in the guise of a restaurant franchise operation," SFGATE reported.

The suit claims the company used money from franchisees to fund itself and recruit additional franchisees.

Additionally, the suit claims the restaurant's signature dish — “Mama Karen’s” taquitos — was not the high-quality, delivered-fresh-daily product advertised. The taquitos were "clearly frozen from questionable supplies" and in some cases made not in a commercial kitchen but at a person's private home.

A Roll-Em-Up Taquitos spokesperson denied the allegations in a statement to SFGATE.

Read more at SFGATE