The US Attorneys Office in Utah has charged a Utah man with securities fraud after he claimed he had a revolutionary new smartphone but never produced one. A new filing confirms this. According to the Justice Department, Chad Leon Sayers sought to solicit approximately 300 investors to invest $10 Million in Saygus. He promised a future billion-dollar success.
Instead of spending the funds he had raised to make the smartphone, Sayers used the money to pay personal expenses and debts. He also paid older investors with funds from other investors. $500,000 was spent on legal fees. $145,000 was spent on entertainment and shopping. $30,000 was spent on his personal credit card.
The US Attorneys Office claims that Sayers started soliciting funds in 2006. He used email, social media, including Twitter, to persuade people and give updates about phone launches.
Saygus showcased its first VPhone in 2009 with a sliding keyboard and then showed it off at the International Consumer Electronics Show in 2015, where it called itself the Saygus V2. The Verge took a look:
Saygus doesn't have to make something look great on paper. Saygus claims the V2 was designed for media junkies. It has 64GB of internal storage and two MicroSDXC slot. The V2 has a 21-megapixel rear camera with dual-LED flash and a 13-megapixel front-facing cam. Harman Kardon speakers are included in the V2, as well as wireless Qi charging and root access for developers. Although the design is not particularly inspiring, it is quite compact and sturdy.
That phone didn't come to pass. Android Police has been closely following the Saygus story for many years. They even have a Saygus section! They have many of the strange twists and turns in this tale, and their archives are full of them.
Sayers' jury trial is set to start August 30th.
