SEC Obtains Final Judgment Against Operator of Multi-Million Dollar Ponzi Scheme

The Securities and Exchange Commission (SEC) made an official announcement regarding the resolution of the case against Ryan Morgan Evans, the last remaining defendant involved in the “Saivian” Ponzi and pyramid scheme, and offering fraud, which amounted to a multi-million-dollar scam. As part of the settlement, Evans has agreed to pay $338,743, including disgorgement, prejudgment interest, and penalties, to resolve the SEC’s claims against him related to the sale of unregistered securities and his contribution to the fraudulent scheme. Previously, the SEC had already obtained final judgments against Evans’ co-defendants, Eric J. “EJ” Dalius, and Saivian LLC.

The SEC’s complaint alleged that Evans held a prominent position within Saivian and was responsible for selling “Cashback Membership” securities. These securities promised holders a 20 percent cashback on their retail shopping purchases every month, provided they paid a $125 fee every 28 days and submitted shopping receipts. However, the complaint revealed that Evans made false claims about the company’s funding mechanism for these cashback payments, stating that they were generated through monetizing point-of-sale receipt data submitted by members. In reality, Saivian operated as a Ponzi scheme, paying returns to some investors using the investments of others. Additionally, the company operated a pyramid scheme, offering a daily residual income stream to affiliates who recruited downline members to purchase Saivian memberships.

On May 24, 2023, the court partially granted the SEC’s motion for summary judgment, confirming that Evans’ offers and sales of Saivian “Cashback Memberships” constituted sales of investment contracts and, therefore, securities. It was established that Evans violated federal securities laws by offering and selling unregistered securities.

The final judgment requires Evans to disgorge $175,000, along with $52,129 in prejudgment interest, and to pay a $111,614 civil penalty. In settling the charges, Evans admitted to offering and selling unregistered securities without admitting or denying the remaining allegations made by the SEC. The money received from Evans will be added to the Fair Fund established in this matter to be distributed to the investors harmed by the fraudulent scheme.

The SEC’s investigation into this case was conducted by Geoffrey Gettinger, Michael Flanagan, and Margaret Vizzi, under the supervision of Ivonia Slade and Melissa Hodgman. The litigation was carried out by David Nasse, Derek Bentsen, Michelle Zamarin, Geoffrey Gettinger, Michael Flanagan, and Kenneth Donnelly. The SEC acknowledges the assistance provided by the Hong Kong Securities and Futures Commission and the United Kingdom Financial Conduct Authority during the course of the investigation.