The Securities and Alternate Fee (SEC) at this time introduced the decision of its case in opposition to Ryan Morgan Evans, the final remaining defendant within the SEC’s motion arising out of a multi-million-dollar Ponzi and pyramid scheme and providing fraud referred to as “Saivian.”
Evans agreed to pay $338,743 in disgorgement, prejudgment curiosity and penalties to settle the SEC’s claims in opposition to him for his function in providing and promoting unregistered securities and furthering the fraudulent scheme. The SEC beforehand introduced remaining judgments on this matter in opposition to Evans’ co-defendants Eric J. “EJ” Dalius and Saivian LLC.
The SEC’s grievance alleged that Evans served as a high government in Saivian and bought “Cashback Membership” securities that entitled holders to obtain 20 % money again on their retail purchasing purchases each month in trade for paying a $125 price each 28 days and the submission of purchasing receipts.
In response to the grievance, Evans falsely claimed that the corporate funded these money again funds to members by monetizing the point-of-sale receipt knowledge submitted by its members. As an alternative, Saivian allegedly operated as a Ponzi scheme by satisfying promised returns to some traders by the investments of others. Saivian additionally allegedly operated a pyramid scheme that promised a each day residual earnings stream for associates who bought Saivian memberships to downline recruits.
The court docket partially granted the SEC’s movement for abstract judgment on Could 24, 2023, discovering that undisputed details established that Evans’ affords and gross sales of Saivian “Cashback Memberships” had been gross sales of funding contracts, and due to this fact of securities, and that Evans violated the federal securities legal guidelines when he supplied and bought securities that weren’t registered.
The ultimate judgment requires Evans to disgorge $175,000 plus prejudgment curiosity of $52,129, and to pay a $111,614 civil penalty. Evans agreed to settle the costs by admitting his provide and sale of unregistered securities and with out admitting or denying the SEC’s remaining allegations.
The SEC intends so as to add cash acquired from Evans to the Honest Fund established on this matter to distribute to harmed traders.