Mexican Chain Hit with Ponzi Scheme Claims

Roll-Em-Up Taquitos, a Southern California chain founded in Chino Hills, is fighting lawsuits that accuse it of running a franchise operation “like a Ponzi scheme.” (restaurantbusinessonline.com) Five current and former franchisees sued in Riverside County Superior Court in July 2025, alleging fraud, negligent misrepresentation, and misappropriation of funds by founder Ryan Usrey, former chief development officer Chris Wyland, and director of information technology Cody Soscia. (restaurantbusinessonline.com) The complaint says Roll-Em-Up used inflated store-performance numbers, understated labor and food costs, and collected royalties and other fees while providing little support to operators who say they invested hundreds of thousands of dollars. (restaurantbusinessonline.com) The case centers on franchising, not just tacos: franchisees pay upfront fees and ongoing royalties in exchange for a brand, operating system, training, and supply chain. The plaintiffs say that bargain broke down after Roll-Em-Up began franchising in 2021. (restaurantbusinessonline.com) The lawsuit also challenges the product itself. Franchisees say they were promised fresh, high-quality taquitos from a proprietary kitchen but were instead supplied frozen taquitos from “questionable” sources, including, they allege, taquitos made in a personal residence. (sfgate.com) Roll-Em-Up denies the fraud claims. Amy Levy, a public relations representative for the company, said on April 14 that the allegations were “falsehoods,” called the chain “a legitimate restaurant brand,” and said the plaintiffs were poor operators who failed to meet their contractual obligations. (restaurantbusinessonline.com) Levy said the company now has one company-owned restaurant and nine franchised locations run by seven franchisees, and that it has not offered new franchises for two years. Roll-Em-Up’s public website still lists locations in California, Nevada, Nebraska, Tennessee, and Texas. (restaurantbusinessonline.com, sfgate.com, rollemup.com) The franchise fight is not the company’s only legal problem. Ferrari Financial Services sued Usrey and Roll Em Up Franchise Group in federal court in September 2024 over a 2020 Ferrari F8 Tributo bought in the company’s name, with the lender alleging a default after the last payment in May 2024. (restaurantbusinessonline.com) That Ferrari suit says the car was listed at $415,000, cost $438,882 with taxes and fees, and left more than $313,000 allegedly unpaid after default. A separate 2024 New Mexico lawsuit accused Roll-Em-Up of breaching an agreement tied to franchise rights; the company countersued and said the operators mishandled the store. (restaurantbusinessonline.com, sfgate.com) For diners, the stores are still selling food. For franchisees and lenders, the next question is whether the courts treat Roll-Em-Up as a struggling chain with bad operators, as the company says, or as a business built on misstatements and recycled franchise money, as the plaintiffs allege. (restaurantbusinessonline.com, restaurantbusinessonline.com)