FAQ: SEC v. Bryan J. Egan/BryCar Financial Corp.
Q: What legal action has the SEC taken?
A: On September 19, 2000, the SEC filed an emergency enforcement action in federal Court charging BryCar Financial Corporation and its president, Bryan J. Egan, with securities fraud and with operating an illegal unregistered broker-dealer. On September 20, 2000, the SEC obtained a temporary restraining order prohibiting BryCar and Egan from engaging in fraudulent activities and offering or selling securities. On November 13, 2000, the Court appointed a Receiver to take control of BryCar's assets and search for any undisclosed assets. On February 6, 2001, the SEC filed a first amended complaint, charging the defendants with fraud while engaged in business as investment advisers and with unlawfully selling unregistered securities.
Q: Who is the Receiver?
A: The Receiver is attorney John E. Ham of the law firm of Santoro, Driggs, Walch, et al.
Q: What is the Receiver's job?
A: The Court has directed the Receiver to take control of all assets of BryCar and those assets in other names that are acknowledged to be BryCar funds, and to search for any hidden or undisclosed assets of BryCar. The Receiver will make a complete accounting of all funds and assets of BryCar to determine the availability of funds to distribute to investors and creditors. At such time as it is no longer efficient or cost effective to search for any more hidden or undisclosed assets, the Receiver will, subject to the Court's approval, distribute such assets to investors and creditors.
Q: How may I contact the Receiver?
A: You may contact the Receiver through the Receiver's law offices at:
Santoro, Driggs, Walch, Kearney, Johnson & Thompson
You may also call and leave a message at (702) 791-0308, (after hours at extension 100) or send an email to email@example.com.
Q: Will I get my money back?
A: At this point, it is too early to tell how much money is available for distribution to BryCar's investors and creditors. The Receiver is making every effort to return to each investor their original investment. However, it is possible that investors may not get back all of their original investment, much less the alleged profits indicated on their account statements. Though it is early in the Receiver's investigation, the Receiver believes that the value of BryCar's assets will end up being much less than the sum of the original investments made by each investor. Nevertheless, the Receiver continues to search for additional assets.
Q: What should investors do?
A: If you would like to be considered in any distribution, investors must submit to the Receiver a completed Proof of Investment Form along with all of the supporting documentation requested in the form. Creditors must submit a Proof of Claim Form. The Court has not yet set a bar date for completion of such forms, but the Receiver will notify each investor and creditor when the Court sets a bar date. Once the bar date has been set, Forms received after such date may be precluded from receiving any distribution by the Receiver.
Q: What about the profits that were made on investments?
A: Although there is evidence that Mr. Egan was engaged in buying and selling securities, it is not clear if such activity was accurately reflected in the account statements sent to each investor. Furthermore, it is not clear from BryCar's records what gains or losses from such activity can be applied to each individual investor account. The Receiver hopes to receive additional information regarding such trading activity from his and the SEC's ongoing investigation.
Q: I thought my investment was guaranteed by a bond issued by Lloyds of London and held in escrow by the SEC for my benefit, or that my investment was safeguarded in an offshore account.
A: Mr. Egan's attorney has stated that no such bonds ever existed nor has there ever been any offshore account set up or funds sent to such an account. The SEC knows nothing of the bonds and never held anything in escrow for BryCar.
Q: Do I need an attorney to represent me?
A: You are not required to have an attorney to submit any investment or claim forms. It is entirely up to each investor or creditor to decide whether or not to consult an attorney on this matter.
Q: What if I have information that may be helpful to the SEC or the Receiver?
A: You may contact the Receiver at the address and number stated above. If you have any additional information that you believe would be helpful to the SEC's investigation, please contact SEC attorney Uta von Eckartsberg in the SEC's Division of Enforcement at (202) 942-4745.