Aaron Wagner promised investors opportunities to invest in restaurants under his companies but used investor funds for himself and other projects. In one case, Wagner solicited $2m for a gourmet donut shop called Hello Sugar but instead used the money towards the plane, along with $6 million in loans. The aircraft was sold to WCFS Travel, and Wagner was the sole owner of that company. The indictment states that $2.39 million of the purchase price came from investor funds entirely supplied by money intended for investment in Hello Sugar, Dirty Bird Hot Chxx, and Las Botellas.
Investors were unaware of Wagner’s intent to buy the plane, which was sold less than a year later. This money was raised from an investment group based in Nebraska. The group’s head notified the FBI that purchasing the plane was not an approved use of those funds. Nothing was refunded to the investors after the sale.
Several whistleblowers notified the SEC of Wagner’s illegal activities, and his use of investor funds to pay previous investors and to fund his lavish social media-show lifestyle. Former employees have stated that Wagner misspent this money to make the companies look prosperous and growing.
Background On Aaron Wagner
On October 28th, 2024, Hindenburg Research published a deep-dive report on Aaron Wagner, his rise to fame, and his companies. At one point, Wagner’s company boasted of having $1B under management but wasn’t even registered as a money manager.
Wagner’s background is something of a mystery. Originally from Canada, he came to the US on a football scholarship with a backpack and $33 in his pocket, he claimed. He played football at Washington State University, later claiming that he watched a Rose Bowl in person, and declared that he would one day play in one. Although he claimed multiple times to have played in a Rose Bowl game, according to the Hindenburg report, the evidence shows otherwise.
Wagner founded his investment firm, Wags Capital, WagsCap Food Services, and others to allegedly build a series of new themed restaurants around the country. In 2021, the company acquired Dirty Bird Hot Chxx in Provo and announced plans for 30 more locations. Those never materialized. Similar stories surround other chains that were planned but never built.
At one point, Aaron Wagner stated publicly that he had over 100 restaurants. But he has never had more than 20, according to one former employee. While some restaurants were built and opened, more were planned but never materialized. Many of his restaurants do not have functional websites and no postings on social media for months. Hello Sugar has only one location, in Spokane, Washington.
Wagner was also involved in the purchase of a building in Missoula, Montana, and made several disparaging remarks on social media after residents expressed their discontent. After the backlash, Wagner issued an apology statement claiming that he’d had “too many margaritas on a family vacation.” Wagner stepped back from the project and allowed Missoula developer Cole Bergquist to handle the renovation. The former location of the Missoulian newspaper has remained vacant since then.
The case is United States of America vs. Aaron A. Wagner, case number 2:24-mj-01042 in the U.S. District Court for the District of Utah.
Did You Invest With Aaron A. Wagner, WagsCapital, Or WagsCap Food Services?
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