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Chad Leon Sayers, founder and CEO of Saygus, received a 29-month prison sentence in July 2024 for defrauding investors in the company’s promised smartphones. Because 15 months of that term were consecutive to his 41-month sentence in a separate SMART’R wire-fraud case, the U.S. Attorney’s Office for the District of Utah described his combined prison term as 56 months. The two sentences arose from different conduct and should not be conflated.
Who is the Saygus founder who was sentenced?
Chad Leon Sayers founded and led American Smartphone Inc., a Utah corporation doing business as Saygus, according to a federal criminal information filed in 2021. The U.S. Attorney’s Office for the District of Utah announced on July 15, 2024, that Sayers was sentenced to 29 months in prison for securities fraud in the Saygus case. The sentence also included 12 months of supervised release and a $100 special assessment. DOJ’s sentencing announcement reports the term and restitution order.
How do the Saygus and SMART’R sentences add up?
The Saygus case was not the only case reflected in the total prison term. DOJ said 15 months of the 29-month Saygus sentence would run consecutively to Sayers’s existing 41-month sentence in the SMART’R case, while the remaining 14 months would run concurrently. In other words, the concurrent portion overlaps with the other term; adding all 29 months to 41 months would be incorrect. DOJ reported the resulting combined term as 56 months.
| Case | Conduct described by DOJ | Sentence and timing |
|---|---|---|
| Saygus securities fraud | Fraud involving investors in the promised Saygus phones | 29 months; 15 months consecutive and 14 months concurrent with the SMART’R sentence; imposed July 2024 |
| SMART’R wire fraud and contempt | Fraudulent fundraising while Sayers was on pretrial release | 41 months; imposed March 2024 |
The dates and terms are those reported by the District of Utah U.S. Attorney’s Office in its July 2024 Saygus release and March 2024 SMART’R release. They establish the sentences imposed, not Sayers’s custody status today.
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What did investors believe they were funding?
DOJ said Sayers raised about $10 million from approximately 300 investors between 2006 and 2020 by portraying Saygus as close to a major payout from a successful smartphone. The company promoted a “V” phone and later the V-Squared, and investors were told a wireless company had agreed to sell and support the devices. According to DOJ, investors were told their investments might return 100 times their original amount.
The federal criminal information describes offerings of pre-IPO stock and promissory notes. It says investors were told the V-Squared was in final development, that Saygus had a claimed Verizon agreement, and that funds would support phone research, design and manufacturing. The information also describes omitted facts, including earlier failed launch attempts, investor defaults and lawsuits, personal use of company funds, and expired Verizon device certification. It states that certification expired in 2013 and was never renewed. This information is a government court filing; DOJ’s later sentencing announcement is the source for the sentence and its account of the admitted case facts. The case summary and filing are available from the U.S. Attorney’s Office.
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What happened to the Saygus V phone?
The promised phones did not reach production. DOJ said no phones were being manufactured, and that the V-Squared never launched. Although investors were told their money would support development and manufacturing, DOJ said Sayers also used funds for personal expenses, office costs, investor repayments and settlements, and other expenses. The sentencing announcement reported $144,773 spent on shopping, entertainment, food and personal care.
What was the separate SMART’R fraud case?
In the separate case, a jury found Sayers guilty in April 2023 of two wire-fraud counts and contempt of court for conduct while he was on pretrial release. DOJ said his release conditions barred fiduciary work, seeking investments and fundraising. Despite those restrictions, it said he sought help raising $300,000 to $500,000 for SMART’R, a mobile-device company.
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According to the District of Utah U.S. Attorney’s Office, Sayers used fabricated financial projections, a fabricated executive team and accolades, and purported partnerships with well-known companies. DOJ also said he concealed his indictment and investor lawsuits. He was sentenced to 41 months in prison in March 2024, followed by three years of supervised release. The wire-fraud and contempt convictions and sentence are distinct from the Saygus securities-fraud sentence. DOJ’s SMART’R announcement describes the verdict and sentence.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How much was ordered in restitution?
The court ordered $10,250,834.53 in restitution in the Saygus case, according to the July 2024 DOJ announcement and the District of Utah’s case summary, updated June 4, 2025. DOJ also reported a forfeiture money judgment in the same amount. Those are court-ordered amounts, not evidence that the money has been collected; the available official materials do not establish collections to date. The restitution figure is also distinct from DOJ’s approximate description of about $10 million raised from investors. The case summary lists the restitution order.
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