SEC seeks receiver for LV company

Friday, Nov. 10, 2000 | 11:55 a.m.

The Securities and Exchange Commission is seeking an order to appoint a receiver for Brycar Financial Corp., a Las Vegas company accused of violating anti-fraud and broker-dealer registration provisions of federal securities law.

The SEC sued Brycar and its president, Bryan Egan, and his wife Carol Egan, also known as Carol DeSalvio, alleging they ran a pyramid scheme where the defendants allegedly bilked hundreds of investors of millions of dollars by offering guarantees that their "risk-free" and "tax-free" investments in "pre-IPO stock" and other securities would generate 500 percent returns.

The government said a receiver is needed to "ascertain (Brycar's) true financial condition, ... the disposition of investor funds, identify and quantify the remaining assets, to take appropriate action with respect to the current securities trading positions and to ensure that all creditors are treated fairly."

The SEC, which proposed appointing John Ham, a Las Vegas attorney, as Brycar's temporary receiver, also seeks to stop the company from filing for bankruptcy protection without first seeking the court's permission with at least 24 hours notice to the SEC.