SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17051 / June 25, 2001
SECURITIES AND EXCHANGE COMMISSION v. BRYCAR FINANCIAL CORPORATION AND BRYAN J. EGAN, DEFENDANTS, AND CAROL A. EGAN, CARA D. SOLORIO AND JESSE SOLORIO, RELIEF DEFENDANTS, Civil Action No. CV-S-00-1125-LDG-LRL (D. Nev.)(LDG)
BRYAN J. EGAN PLEADS GUILTY TO CRIMINAL SECURITIES AND BANK FRAUD CHARGES
On June 25, 2001, Bryan J. Egan, age 27, the former president of Las Vegas, Nevada based BryCar Financial Corporation, pleaded guilty before Judge Kent J. Dawson in the U.S. District Court for the District of Nevada to a two count criminal information brought by the United States Attorney charging Egan with securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and bank fraud in violation of 18 U.S.C. § 1344. Egan is scheduled to be sentenced on October 5, 2001. Egan's plea agreement provides that he will be sentenced to at least 63 months in prison.
The criminal securities fraud charge against Egan is based on the same conduct underlying the Securities and Exchange Commission's civil enforcement action against Egan and BryCar filed on September 19, 2000. The SEC's complaint alleged that Egan and BryCar were operating a fraudulent Ponzi scheme in which they collected millions of dollars from hundreds of investors with guarantees that, among other things, their "risk free" investments in so-called "pre-IPO" stock and other securities would generate 500% returns. The SEC's complaint also alleged that BryCar illegally offered and sold securities without being registered with the SEC as a broker-dealer. Egan is further alleged to have looted investor funds from BryCar on numerous occasions to support his lavish lifestyle. For a full description of the SEC's claims, see Litigation Release Nos. 16713 (September 20, 2000), 16726 (September 27, 2000), 16810 (November 28, 2000), and 16889 (February 6, 2001).
Egan's plea agreement with the United States Attorney provides that he will, without admitting or denying the allegations of the SEC's complaint, consent in the SEC's civil enforcement action to an order permanently enjoining him from violating the anti-fraud provisions of the Securities Act of 1933 (Section 17(a)), the Securities Exchange Act of 1934 (Section 10(b) and Rule 10b-5) and the Investment Advisers Act of 1940 (Section 206(1) and (2)), and the registration provisions of the Securities Act of 1933 (Section 5(a) and (c)). Egan will also consent to pay disgorgement of illegal profits, plus prejudgment interest, and a civil money penalty, in amounts and upon such terms as may be determined by agreement of the parties or by the Court upon motion by the SEC.
The bank fraud charge against Egan is unrelated to his securities fraud.
Investors or other interested parties may direct questions to BryCar's Court-appointed receiver, John E. Ham, Esq., at Santoro, Driggs, Walch, Kearney, Johnson & Thompson, 3773 Howard Hughes Parkway, Suite 290N, Las Vegas, NV 89109. The receiver may be reached by telephone at (702) 791-0308 ext. 100, or by e-mail addressed to TDriggs@nevadafirm.com.