Scam Goddess – Fraud Friday: LulaRobbed!: The Lawless Legging Company

Host: Laci Mosley
Guest: Georgia Hardstark (My Favorite Murder)
Date: January 30, 2026

Episode Overview

This Fraud Friday episode of Scam Goddess dives deep into the infamous multi-level marketing (MLM) scheme of LuLaRoe, the notorious leggings company that swept through suburbia promising financial independence to stay-at-home moms—only to leave thousands in debt and covered in moldy, bizarrely-printed leggings. Comedian and podcast legend Georgia Hardstark joins Laci for a hilarious but scathing dissection of the “Lawless Legging Company”’s rise and fall, peppered with banter about cults, scams, and that ever-present hustle for the almighty dollar.

Key Discussion Points & Insights

1. Scam Confessions and Gullibility

Laci starts by asking Georgia about her history with scams. Georgia claims she’s mostly an “observer,” though she considers herself “really gullible” and easily swayed by self-improvement products.

• Georgia (03:51): “I’m actually shocked I haven’t fallen for a scam yet… I'll buy the subscription.”
• The hosts bond over buying dubious beauty products and the “cult of botox.”

2. Listener Scam Mailbag: Nude Blackmail on Grindr

Laci introduces “What’s Hot in Fraud,” featuring a letter from “Skyler,” a gay listener who narrowly avoided a sextortion scam on Grindr.

• Key Segment (07:39–17:56):
  • Skyler is targeted after swapping nudes; the scammer screenshots his Instagram connections and threatens to send compromising images unless he pays $300 in iTunes gift cards.
  • Instead of complying, Skyler “leak[s] them to get ahead of it,” informing his friends and diffusing the scammer’s leverage.
  • Notable quote:

    “That’s the thing about blackmail. Okay, so are you gonna do the blackmail? You’re not gonna get no money, so. Right. You just gonna do it to be mean?” – Laci (16:13)

  • Both hosts emphasize: “Never pay a blackmailer—because the requests will never end.”
  • PSA: Take precautions with nudes—avoid faces, tattoos, or identifiable marks.

3. Historic Hoodwinks: The Rise and Fall of LuLaRoe

Main Segment (21:02–61:16)
Laci introduces the most requested scam story ever: the saga of LuLaRoe. Laughter and astonishment ensue as they break down this uniquely American tale of leggings, cult tactics, and MLM madness.

a. LuLaRoe Origins & Business Model

• Founded by DeAnne Brady and Mark Stidham in 2012, named for grandkids Lucy, Lola, and Monroe.
• Started as parties selling cheap maxi skirts; rapidly expanded to the MLM clothing empire.
• Georgia (28:32): “Naming your company after [your grandkids]… that’s cute—if your company’s not a scam.”

b. Family Business—Cronyism and Inexperience

• Key roles filled exclusively by DeAnne’s adult children and their spouses, regardless of relevant business experience.
• Notable joke:

  “You know it’s a scam when you start putting your family on the payroll… That’s what Bernie Madoff did.” – Laci (32:26)

c. Consultant Onboarding & Cult Mentality

• Buy-in: Minimum $5,000 to $6,000 in inventory to become a consultant—huge risk for the average family.
• Consultants encouraged to “pawn their vehicle, stop paying bills, even sell breast milk” to afford buy-in.

  “I was urged to stop paying my bills, pawn my vehicle…sell that titty milk.” – Laci (41:12)

• Consultants had to buy inventory sight-unseen—the company selected prints, resulting in unsellable stock and “poop leggings.”
• Gaslighting: Consultants blamed for poor sales (“Your inventory’s not stale—you are,” a direct quote from the company owner).

d. Compensation Structure & MLM/Pyramid Scheme Features

• Downline bonuses favored recruiting over actual sales.
• Only top 1% made meaningful bonuses; most lost money or went into debt.
• Sudden change in structure (April 2017) shifted payouts based on actual sales, not purchases—bankrupting many lower-level consultants and sending massive waves of departures.
• Georgia (47:05): “In the documentary, the [owner’s] son literally says, ‘We have to make this not be a Ponzi scheme.’”

e. Quality Issues: Pattern Disasters & Moldy Inventory

• Designers forced to churn out new prints daily, often copying from Google Images or making careless, NSFW pattern placements.
• Leggings were often paper-thin, moldy, or sun-bleached due to rapid expansion and storage mishaps.

  “People were getting wet, moldy leggings… [T]hey’d be told: ‘Put it in the oven for a few minutes, it’ll get rid of the stank.’” – Laci (55:33)

• Lawsuits filed for defective products and refunds denied.

f. Lawsuits & Legal Battles

• Over 50 lawsuits: Allegations of defective products, fraudulent business practices, and running an illegal pyramid scheme.
• Suppliers, notably Mydior, also sued for millions in unpaid invoices.
• LuLaRoe countersued for $1 billion; eventually settled for $4.75 million.
• The company is still in business (as of 2021, with far lower startup fees), but thousands of ex-consultants left in debt and trauma banded together in Facebook support groups.

g. Notorious Moments

• Cult-like conventions and lavish parties with stars like Katy Perry and Kelly Clarkson.
• Anecdote: Two of DeAnne and Mark’s adopted children married each other; the company breezes past this in their infamous documentary.
• Many consultants lost relationships, homes, and financial security.
• Some ex-employees claim they “can’t forgive Kelly Clarkson” for singing at the event.

Notable Quotes & Memorable Moments

• Georgia (03:51): “I’m really gullible. I’ll buy all the things… so I’m actually shocked I haven’t fallen for a scam yet.”
• Laci (12:05): “That’s not how blackmail work. Like, I send you $300 now, then I’m gonna have to keep sending you every time you feel like you want to send my bootyhole [pics].”
• Laci (44:53): “He would gaslight these poor women and be like, ‘Your inventory’s stale. No, you’re stale.’”
• Georgia (47:05): “The [owner’s] son literally says, ‘We have to make this not be a Ponzi scheme.’”
• Laci (55:33): “They were told: ‘Put it in the oven for a few minutes, it’ll get rid of the stank.’”
• Georgia (53:05): “They have 14 children, and two of them got married—to each other!”
• Laci (60:33): “There’s a woman who says, ‘I love LuLaRoe, I’m gonna sell LuLaRoe ‘til I die.’ Still.”

Scammer of the Week

(61:44–67:29)
Laci shares the cautionary tale of Carla Wilbone, who unknowingly participated in a daisy chain scam involving fraudulent checks, remote “job” offers, and a woman strung along by a five-year online-only boyfriend.

• Carla is instructed to deposit a fake check and forward funds along—classic check scam.
• The “boss” is also scamming a Michigan woman, who for five years has sent money hoping her online boyfriend would return from Europe.

  “Online boyfriend of five years… Those two words don’t go together.” – Georgia (64:10)

• Both women are left “heartbroken and out thousands of dollars.”

Guidance & Takeaways

• Never pay a blackmailer: Paying only perpetuates the threat.
• MLMs are predatory: If you must invest to earn, it’s probably a scam designed to benefit those above you.
• Avoid jobs asking you to handle or forward money: This is classic check fraud territory.
• Be wary of online relationships that never materialize in real life.
• LuLaRoe is still functioning, with much lower buy-in—but it’s still an MLM, and “the leggings are probably still ugly.”

Timestamps for Major Segments

• 03:44 – Georgia’s relationship with scams
• 07:39–17:56 – Grindr nude blackmail listener story
• 21:02 – Beginning of LuLaRoe “Historic Hoodwinks” deep dive
• 28:32 – MLM family drama and leadership structure
• 35:02 – Consultant buy-in and cult tactics
• 43:38 – Shady sales tactics; “Ugly/unsellable” leggings
• 44:53 – Gaslighting victims in the business
• 47:05 – Internal panic about being a Ponzi scheme
• 55:32 – Leggings quality disaster (“put it in the oven” anecdote)
• 61:44–67:29 – Scammer of the Week: Check scam and online relationship scam

Resources & Further Listening

• “LuLaRich” documentary (Amazon Prime)
• Waiting for Impact with Dave Holmes

Where to Find the Hosts

• Georgia Hardstark: @hardstark on Instagram; puppy & kitten account “Cookie and Moses”
• Laci Mosley: @divalaci on all platforms; host of “Scam Goddess,” Black Lady Sketch Show (HBO Max), and iCarly (Paramount+)

As Laci says:

“Rate, review, subscribe… and stay schemin’!”

End of Summary