You may barely remember Utah-based Saygus as a vaporware company that was constantly promoting a revolutionary smartphone for the power user that it never actually released. The federal government, though, wants to officially stick one particular title to its founder: fraudster.
District attorneys in Utah have filed suit against Chad Leon Sayers on a single count of securities fraud, alleging that Meyers deceived more than 300 investors about how he was using the more than $10 million he raised from them. The government is looking for a financial judgment in that same ballpark.
Monies intended for the company were instead used to settle litigation from other creditors, repay old loans with cash from new loans, pay for lavish facilities (that includes $42,000 per month in rent on office space for 10 employees and $10,000 for the building sign you see above), and pay down his personal credit card. It's also said he deceived stakeholders on how far along his efforts were going — the tweets did not help — and how much debt he took on.
The Department of Justice claims that Sayers had been soliciting investors for funds to launch a mobile phone since 2006 — that's at least 8 years prior to the first time we saw the Saygus V2 at CES 2015. The executive apparently was able to notch device certification as well as a sales and support deal from Verizon, but all that expired in 2013. You can inspect our story archives on all the tribulations that have prevented the company's phones from shipping to customers for going on 6 years.
A jury trial is set to begin on August 30 and is expected to last one week. If Sayer's charge sticks, we'll finally be able to call Saygus out for what we've all thought it to be. Thank goodness for the transitive property.