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Smartphone Scammer Sent to Prison for 56 Months
A Utah businessman has been sentenced to a total of 56 months in prison for his role in a massive smartphone investment scam that cheated hundreds of people out of $10 million.
Chad Leon Sayers, 60, of Midvale, Utah, was sentenced to 29 months’ imprisonment, 15 of which will run consecutively to his existing 41-month sentence, which was handed down in a separate wire fraud case.
In addition to his prison sentence, Sayers was also ordered to pay $10,250,834.53 in restitution and a forfeiture money judgment in the same amount. He was given 12 months’ supervised release following his prison term.
According to court documents, Sayers defrauded approximately 300 investors between 2006 and 2020 by lying about his company, SAYGUS, being on the brink of a multi-billion-dollar payout. He claimed to investors that he was developing a smartphone called the ‘V’ phone and later the ‘V-Squared,’ and that a well-known wireless company had agreed to sell and support the phones.
However, Sayers used the investment funds for personal expenses, including personal loans, credit card bills, rent, and luxury car payments. He also used the money to rent office space for SAYGUS and employed several people, despite the company not being a real business.
Sayers was caught after a decade-long investigation by the Utah Division of Securities and the FBI Salt Lake City Field Office. He was found to have tweeted 26 times about the impending launch of the smartphone, despite it never being released.
U.S. Attorney Trina A. Higgins made the announcement, stating that Sayers’ actions had caused significant harm to trusting investors. The case was prosecuted by Assistant United States Attorneys Ruth Hackford-Peer, Jacob J. Strain, and Special Assistant United States Attorney Sachiko Jepson.
The Utah Division of Securities and the FBI Salt Lake City Field Office investigated the case, which highlights the importance of vigilance in protecting investors from scams.
Key Facts
- State: Utah
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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