Snapback hats are popular with the likes of Justin Bieber and Harry Styles. Source: Supplied

The Herald Sun reports teenage entrepreneur Alexander Beniac-Brooks thought he could solve his financial woes and pay back his investors by importing 50,000 ‘Obey Snapback’ hats from China.

“He spent a lot of money on them but the quality was so bad he couldn’t sell them,” a teen investor burned in the scheme told the newspaper.

Earlier this week, the Herald Sun revealed the teen’s parents were forced to front up the cash to pay back investors in his failed online fashion business.

But a school insider told the newspaper the losses from the scheme were substantial: “One pupil lost $150,000. The total losses could be even more like half a million.”

In a statement, Scotch College said: “The school’s view is that this is a matter for the families and individuals involved.”

A police investigation is ongoing.