SEC Resolves “Saivian” Ponzi Scheme
The Securities and Exchange Commission announced the resolution of its case against Ryan Morgan Evans, the last remaining defendant in the SEC’s action arising out of a multi-million-dollar Ponzi and pyramid scheme and offering fraud known as “Saivian.”
As The DI Wire previously reported in February 2023, the SEC announced resolution of its fraud action against the company and its owner, Eric J. Dalius, pay $24 million in disgorgement, prejudgment interest and penalties to settle the SEC’s claims.
The SEC says Evans agreed to pay $338,743 in disgorgement, prejudgment interest and penalties to settle the SEC’s claims against him for his role in offering and selling unregistered securities and furthering the fraudulent scheme.
The SEC’s complaint alleged that Evans served as a top executive in Saivian and sold “cashback membership” securities that entitled holders to receive 20% cash back on their retail shopping purchases every month in exchange for paying a $125 fee every 28 days and the submission of shopping receipts.
According to the complaint, Evans falsely claimed that the company funded these cash back payments to members by monetizing the point-of-sale receipt data submitted by its members. Instead, Saivian allegedly operated as a Ponzi scheme by satisfying promised returns to some investors through the investments of others. Saivian also allegedly operated a pyramid scheme that promised a daily residual income stream for affiliates who sold Saivian memberships to downline recruits.
The court partially granted the SEC’s motion for summary judgment on May 24, 2023, finding that undisputed facts established that Evans’ offers and sales of Saivian “cashback memberships” were sales of investment contracts, and therefore of securities, and that Evans violated the federal securities laws when he offered and sold securities that were not registered.
The final judgment requires Evans to disgorge $175,000 plus prejudgment interest of $52,129, and to pay a $111,614 civil penalty. Evans agreed to settle the charges by admitting his offer and sale of unregistered securities and without admitting or denying the SEC’s remaining allegations. The SEC intends to add money received from Evans to the Fair Fund established in this matter to distribute to harmed investors.
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