SEC accuses LV firm of running pyramid scheme

Wednesday, Sept. 20, 2000 | 11:11 a.m.

The Securities and Exchange Commission is seeking a court order to freeze the assets of a Las Vegas company accused of running a pyramid scheme that the government alleges bilked hundreds of investors of millions of dollars.

In a U.S. District Court lawsuit filed Wednesday, the SEC sued BryCar Financial Corp. and its president, Bryan J. Egan; along with Carol Egan, also known as Carol A. DeSalvio; alleging they ran a pyramid scheme where the defendants allegedly offered guarantees that their "risk-free" and "tax-free" investments in so-called "pre-IPO" stock and other securities would generate 500 percent returns.

The Nevada Securities Decision issued a cease and desist order on Sept. 8 ordering BryCar to stop operating as an unlicensed broker dealer and selling unregistered securities.

The SEC alleged that on Sept. 14, shortly after news of the issuance of the cease and desist order was reported in Las Vegas, Bryan Egan "brazenly emptied Brycar's primary bank account" of $380,000 and wire-transfered the money to a personal account maintained in his name at WingspanBank.com, an Internet bank.

Sherwood Cook, the defendants' attorney, could not be reached.