SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17060 / July 5, 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)
SEC OBTAINS FINAL JUDGMENT AGAINST BRYAN J. EGAN FOR FRAUDULENT PONZI SCHEME
The Securities and Exchange Commission announced that on June 29, 2001, Judge Lloyd D. George of the United States District Court for the District of Nevada entered, by consent, a final judgment permanently enjoining Bryan J. Egan from future violations of the anti-fraud and registration provisions of the federal securities laws. Egan also consented 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 Commission.
In its complaint filed on September 19, 2000, the Commission alleged that Egan operated a fraudulent Ponzi scheme in which he and BryCar Financial Corporation 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), 16889 (February 6, 2001) and 17051 (June 25, 2001).
Without admitting or denying the allegations contained in the complaint, Egan consented to the entry of the final judgment permanently enjoining him from future violations of 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)).
In a related criminal proceeding, on June 25, 2001, Egan pled guilty to a two felony count criminal information brought by the United States Attorney for the District of Nevada charging Egan with securities fraud and bank fraud. For a full description of Egan's criminal plea, see Litigation Release No. 17051 (June 25, 2001).