However, Sayers has used the money to “pay personal expenses and pay old investors with money obtained from new investors.” Sayers is due to appear in court on August 30 to answer charges. Sayers started a Ponzi business and has used new investors’ money to pay off debts to previous investors. Dates back to April, The United States Attorney’s Office released the documents of allegations against CEO Chad Sayers. As per the documents, Sayers has spent $2.7 million on repaying older investors from new investors’ money. Moreover, he utilized approximately $2.17 million in office rent and paid $10,000 a month on a consulting contract and $10,000 a month for a building sign. Other expenses include paying approximately $42,000 per month for rent on a 25,950 square foot office space for 10 employees. For settling lawsuits with other investors, he utilized $800,000 of investor funds. Also, Sayers paid $1.7 million to American Express and spent $500,000 on legal fees, $145,000 on shopping, entertainment, food, and personal care. In the end, he paid $30,000 on his personal credit card. The US Attorney’s Office for the District of Utah calls the case “A MONEY JUDGMENT in the approximate amount of $10,000,000 representing the value of any property, real or personal, constituting or derived from proceeds traceable to the scheme to defraud.”
Saygus was considered a promising phone maker
If you have been following the news of smartphones for more than 5 years, you must have heard the name Saygus. They unveiled Saygus V2 in 2014, and the device won the CES 2015 Innovation Award. Saygus V2 specification included Harman Kardon Sound Technology, water resistance, Android KitKat 4.4, and 64GB storage with support for up to 256GB SD card. Many features that Saygus claimed for its phone were promising for the time. A 1080p FHD 5″ borderless screen, aluminum for the body, and auto-focusing front and rear cameras could certainly convince investors. However, it is now clear that Saygus’ claims were empty, and the CEO has to deal with more than 300 angry investors.
