2001-06-25 sec-litreleases litigation_release 65 KB 3,124 chars

SEC v. Brycar Financial Corporation; and Bryan J. Egan, No. LR-17051, District of Nevada (June 25, 2001) — Press Release

raw: Brycar Financial Corporation and Bryan J. Egan, Defendants, and Carol A. Egan, Cara D. Solorio and Jesse Solorio, Relief Defendants

Brycar Financial Corporation and Bryan J. Egan, Defendants, and Carol A. Egan, Cara D. Solorio and Jesse Solorio, Relief Defendants, No. LR-17051 (June 25, 2001)

Caption
SEC v. Brycar Financial Corporation, et al.
Source JSON
summary

Bryan J. Egan, former president of BryCar Financial Corporation, pleaded guilty to securities and bank fraud for operating a $10 million Ponzi scheme promising 500% returns on unregistered pre-IPO securities, looting investor funds for his lavish lifestyle, and faces at least 63 months in prison plus civil penalties and injunctions.

paragraph

Bryan J. Egan pleaded guilty to criminal charges of securities fraud and bank fraud for running a Ponzi scheme that defrauded hundreds of investors of approximately $10 million by falsely promising 500% returns on unregistered 'pre-IPO' securities. He misappropriated investor funds to finance a lavish personal lifestyle and illegally sold securities without registering as a broker-dealer, violating Sections 10(b) and 17(a) of federal securities laws. As part of his plea agreement, Egan faces a mandatory minimum of 63 months in prison, consented to a permanent injunction, disgorgement of illegal profits with prejudgment interest, and a civil penalty, while the bank fraud charge was unrelated to the securities scheme.

narrative

Bryan J. Egan, former president of BryCar Financial Corporation, pleaded guilty to criminal charges of securities fraud and bank fraud for orchestrating a $10 million Ponzi scheme that lured hundreds of investors with false claims of 500% returns on 'risk-free' pre-IPO securities. He illegally offered and sold unregistered securities without registering as a broker-dealer, in violation of federal securities laws, and systematically looted investor funds to support a lavish personal lifestyle. The securities fraud was the basis of both the criminal charges and the SEC’s parallel civil enforcement action, which alleged widespread fraud and misappropriation. Egan’s plea agreement includes a mandatory minimum sentence of 63 months in prison and requires him to consent to a permanent injunction barring future violations of securities and investment adviser laws, along with disgorgement of ill-gotten gains plus prejudgment interest and a civil penalty to be determined by the court. The bank fraud charge was unrelated to the securities scheme, indicating separate criminal conduct. A court-appointed receiver, John E. Ham, has been tasked with recovering and distributing assets to victims, and Egan did not admit or deny the SEC’s allegations but agreed to the civil sanctions as part of his plea deal. Investors and interested parties may contact the receiver for further information regarding asset recovery.

Enriched metadata

Scheme
ponzi (100%)
Court
District of Nevada
Outcome
pleaded · 2001-06-25
Entity
BryCar Financial Corporation
Classified ponzi(confidence 100%). EDGAR detection: forms Form D· recall 35% / precision 15%. detection rule →
Statutes
18 U.S.C. § 1344Section 10(b) of the Securities Exchange ActSection 206(1) and (2)), and the registration provisions of the Securities ActSection 206(1) and (2)), and the registration provisions of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionBrycar Financial CorporationBryan J. Egan
Keywords
egansecuritiesbryan eganbrycarbrycar financialfinancial corporationsecurities exchangesoloriofraudcorporation bryanegan carolcarol eganegan caracara soloriosolorio jesse

Extracted insights

Entities 5
  • person bryan j. egan
  • scheme_term his securities fraud
  • scheme_term that egan and brycar were operating a fraudulent ponzi scheme
  • scheme_term the criminal securities fraud charge
  • agency the sec's complaint
Triples 10
  • Bryan J. Egan Pleaded Guilty To Criminal Securities And Bank Fraud Charges
  • Bryan J. 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 Is Based On The Same Conduct Underlying The Securities And Exchange Commission's Civil Enforcement Action
  • The Sec's Complaint Alleged That Egan And Brycar Were Operating A Fraudulent Ponzi Scheme
  • The Sec's Complaint 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
  • Egan's Plea Agreement Provides That He Will 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
  • Egan's Plea Agreement Provides That He Will Consent To Pay Disgorgement Of Illegal Profits, Plus Prejudgment Interest, And A Civil Money Penalty
  • The Bank Fraud Charge Is Unrelated To His Securities Fraud
View original SEC litigation releasesec.gov
Extracted body text (3,124c) 
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 [email protected].
OCR text (3,124c · plain-text · 99% conf) 
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 [email protected].