EP346: The $812 Million Investment Scams: How THEY Fooled the World

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If you’ve ever had that moment where you scroll the news, see a headline about another investment scandal, and think “How does this keep happening?” — you’re not alone.

In 2025, two major stories rocked the private-investing world. And honestly? It wasn’t the dollar amounts that shook us… it was the patterns we’ve seen play out again and again.

But before we get there, let’s back up.

When Headlines Hide the Real Story

Two big cases were announced:

• Tai Lopez’s Retail Ecommerce Ventures — the team behind the nostalgia-brand comebacks like RadioShack and Pier 1
• Prestige ATM Funds — run by Daryl Heller and David Zook

Between them?

Nearly half a billion dollars. Gone.

And while these are allegations — not convictions — the lessons underneath are very, very real.

Because the question isn’t:

“How could they do this?”

It’s:

“How do we make sure our next investment doesn’t teach us the hard way?”

That’s the heart of today’s conversation.

Who We Are (In Case You’re New Here)

➡️ We’re Nancy and Palmy — the Kitti Sisters.

Two immigrant girls who started with $2,000 in the bank and somehow (through grit + Google + a whole lot of faith) built a $400 million multifamily real estate portfolio.

Over the years, we’ve raised over $130 million from investors and protected them through every market cycle — the good, the scary, the unpredictable.

Our mission?

To help you build wealth the honest way, in a world that loves selling shortcuts.

Why These Cases Matter More Than the Headlines

Here’s what we’ve learned after years in the trenches: Scandals like this don’t happen because people are stupid.

They happen because people are hopeful.

They happen because someone tells a really good story — with confidence, charisma, and “look how fast everyone else is getting in!”

And if you’ve ever invested with your heart instead of your due diligence… you know exactly how easy it is to get swept up.

So let’s break down what actually happened — and what we can all learn from it.

Case #1 — The Tai Lopez “Nostalgia Revival” Pitch

Remember the viral “Here in my garage” guy standing next to a Lamborghini? Yep, that’s him.

The pitch sounded brilliant:
Buy beloved, dying brands → resurrect them online → ride the nostalgia wave → profit.

But according to the SEC?
The profits were allegedly smoke and mirrors.

They claim:

• $112 million raised from investors
• New investor money was used to pay old investors
• Millions allegedly went to personal expenses

In other words… the story was the product.

And people bought it.

Case #2 — The Prestige ATM Collapse

This one hits closer to home because we personally know people who invested.

The pitch was simple — almost too simple: “Every time someone withdraws cash from an ATM, you earn a fee.”

Between 2012 and 2024, they raised about $700 million.

But lawsuits allege that the ATMs either didn’t exist, didn’t work, or weren’t placed in the field — meaning some returns weren’t from profits… but from new investor money.

When the new money stopped?

Everything collapsed.

It wasn’t just money that vanished.

It was trust.

And trust is much harder to rebuild.

Why Smart People Fall for Bad Deals

If you take nothing else from this blog, let it be this:

Human nature is the greatest risk in investing.

We want to believe the good story.

We want to believe the person with the big personality.

We want to believe we found something “special,” “exclusive,” “can’t miss.”

And when everyone around you is talking about 25% annual returns while the market average is 8%… it’s easy to think you’re the one who finally “cracked the code.”

But repetition becomes reputation.

And reputation isn’t the same as integrity.

The Five Filters We Use Before We Invest in Anything

Here’s how we protect ourselves — and our investors — every single time:

1️⃣ Follow the money.

If you can’t trace how your dollar is used, it’s not an investment — it’s a donation.

2️⃣ Be allergic to guarantees.

There is no such thing as a guaranteed return in equity investing.

3️⃣ Check alignment.

If the operators aren’t investing alongside you, that’s a clue.

4️⃣ Demand transparency.

Real deals can withstand real questions.

5️⃣ Trust your gut.

Intuition is data. If something feels off… it probably is.

And one bonus rule?

If someone rushes you, walk away.

Good deals don’t expire in twelve hours.

What We Choose Instead

We love multifamily real estate for one simple reason: People will always need a place to live.

Clean, affordable, well-run housing will never go out of style — and doesn’t rely on nostalgia, questionable assets, or tech trends that change every six months.

We build portfolios based on logic, not hype.

On demand, not storytelling.

On partnership, not pressure.

It’s slower than the “get-rich-yesterday” world of Instagram…

but it’s also safer, steadier, and rooted in truth.

The Real Lesson

The market doesn’t just test your money — it tests your judgment.

You can’t eliminate all risk.

But you can eliminate blind trust.

Honesty may not raise money the fastest… but it raises it the safest.

And trust?

Trust isn’t built on hype.

It’s built on truth — every single time.

If this conversation helped you see things more clearly, share it with someone you care about. One honest conversation can save someone’s financial future.