How a $450 Million Ponzi Scheme Accidentally Launched Interim Coffee

July 22, 2025

We featured Ray Orate, owner of Interim Coffee in Episode 1 of our Early Shift Series. In that conversation the story of how Interim Coffee started came up. We were shocked with what we heard. The story was left out of the Early Shift video because we felt it was too good not to post as a stand alone story. The story is wild so buckle up and press play.

In the heart of Carlsbad, Interim Coffee has become a go-to spot for locals seeking quality coffee and good vibes. But behind the perfectly roasted beans and casual atmosphere lies one of the wildest origin stories in specialty coffee.

From Roastery Job to Federal Investigation

Before Interim Coffee existed, co-founders Ray and John were working for a San Diego-based roasting company. The business seemed legit... until it wasn’t.

The company was owned by an investment group run by Gina Champion-Cain, a high-profile figure later convicted of orchestrating a $450 million Ponzi scheme. Using fake liquor license applications and promises of high returns, Gina manipulated investors for over a decade, funneling money through a network of businesses including a coffee roastery.

“I had access to the P&L statements and was getting paid a salary no one in coffee gets. That was the first red flag,” Ray recalls.

Despite the suspicions, nothing could prepare them for what happened next.

The Morning Everything Changed

In 2018, Ray showed up to work around 7 a.m. at the roastery’s warehouse near Sports Arena Blvd.

“I turned the corner and saw marked vehicles everywhere… FBI agents were surrounding the building.”

Inside, the FBI and SEC had taken over. Within minutes, staff were told that the business would be shut down, all assets seized, and everyone let go within 20 days. The Ponzi scheme had officially collapsed.

Acting Fast: A New Beginning

Rather than panic, Ray moved quickly. He met with federal investigators to see if he could salvage what he and John had built, a book of business generating about $1,000 a week in wholesale coffee sales.

“The investigators told me, ‘We’re here for assets only. If you’ve got somewhere else to roast coffee, take it.’”

Ray and John did just that. With the help of a friend in Oceanside who had a roaster, they moved their entire operation overnight and began fulfilling orders from scratch.

The Accidental Name: “Interim Coffee”

Still roasting out of their homes and scrambling to meet corporate account demands, the two needed to set up a legal business and fast. That meant tax IDs, ACH payment info, and most importantly: a name.

While brainstorming, John’s roommate interrupted:

“You guys are overthinking this. Just call it Interim Coffee. You’re in between jobs, right?”

They laughed, but it stuck. The name was available. They bought the domain. Interim Coffee was born.

What started as a joke became permanent, especially once the full extent of Gina Champion-Cain’s crimes hit the news.

“We realized we couldn’t ditch the name. It was too good. We were forever tied to this $450 million Ponzi scheme.”

Truth Stranger Than Fiction

Gina was sentenced to 15 years in prison. But even behind bars, the story didn’t stop. She later helped expose a prostitution ring being run by the prison’s warden, which may earn her an early release.

“She always said this would be a Netflix movie,” Ray says. “She’s probably right.”

Final Thoughts: From Scandal to Specialty

Today, Interim Coffee thrives as one of North County San Diego’s most respected roasters, with a story that feels more Hollywood than hometown. What began in chaos has become a case study in resilience, hustle, and unexpected brand identity.