In our previous report, “The Billion-Dollar Influencer’s Reckoning: Aaron Wagner and Michael Mains Face Justice as New Evidence Emerges,” we documented how Aaron Wagner, a former BYU football player turned social media influencer, and his business partner Michael Mains built a $1 billion mirage through their investment firm, Wags Capital, and its subsidiary, Wagscap Food Services. That report detailed the collapse of their empire, the federal charges they faced, and the emerging evidence of a scheme that defrauded investors who believed they were funding popular restaurant chains like Crumbl Cookies, Dirty Bird, and Everbowl.

This update confirms that both men have now pleaded guilty and are awaiting sentencing, with a date set for November 18, 2026.

The Guilty Pleas

On August 26, 2026, Aaron Wagner pleaded guilty to three counts: conspiracy to commit money laundering, conspiracy to commit wire fraud, and bank fraud. Two days later, on August 28, Michael Mains followed with his own guilty plea to counts 3 and 6. Wagner’s plea deal with federal prosecutors includes an agreement to serve 10 years in federal prison, though the judge could impose a sentence of up to 60 years and $1.5 million in fines.

In a statement to the court, Wagner admitted that “almost immediately after receiving investor funds in this scheme, we began using the funds to purchase and acquire assets the investors had no legal ownership interest in”. He further acknowledged that while Wagscap Food Services told investors it had “a proven track record of profitability and quarterly investor distributions,” the entity was in fact unprofitable, borrowing from investors in other entities to cover payroll and operations.

The Scope of the Fraud

According to the U.S. Attorney’s Office for the District of Utah, Wagner and Mains raised approximately $40 million from investors between March 2021 and 2024. The funds were solicited through Wagscap Food Services, LLC, with promises to develop and expand restaurant chains including Crumbl Cookies, Dirty Bird, Everbowl, Hello Sugar, Kokonut Island Grill, and Las Botellas. Investors were promised returns as high as 39% on their funding to open more Dirty Bird locations, even though the existing locations were not profitable.

Instead of using the capital for its intended purpose, Wagner diverted millions for personal luxuries. Between October 2021 and February 2022, he spent more than $8 million on a private plane and properties, including a $4.2 million five-bedroom home in Scottsdale and a $90,000 Audemars Piguet watch purchased by refinancing land he had bought for over $4.3 million. Prosecutors described the arrangement as a classic Ponzi scheme, with Wagner using funds from new investors to pay back earlier investors.

The scheme also extended into Mains’ personal affairs. As noted in the original Reddit post summarizing the case, the pair “allegedly worked together to conceal marital assets from Mains’ ex-wife during his divorce”. A 2021 email from Mains to Wagner introduced into evidence—Exhibit 3—shows Mains suggesting the use of “overraise” funds to finance a private jet, writing: “With Scottsdale restaurant opening and Candace (Wagner’s wife) loving it down there, you might want a plane every weekend”.

What Comes Next

Sentencing for both men is scheduled for November 18, 2026. Aaron Wagner will be sentenced at 10:00 a.m., followed by Michael Mains at 10:30 a.m.. The FBI’s Salt Lake City Division has also issued a public call for potential victims of the Wagner/Mains restaurant fraud investigation to come forward, indicating that the full scope of the scheme may extend beyond the charges already resolved.

For the investors who entrusted millions to Wagner’s carefully curated persona—a persona built on lies about Rose Bowl appearances and billion-dollar portfolios—the sentencing will mark the end of a nearly two-year legal process. But the financial and emotional damage wrought by the scheme will endure far longer.

This is a developing story. Hindenburg Papers will continue to follow the case through sentencing and beyond.