A lawsuit filed towards Clayton Sampson, aka Clay Sampson, has revealed behind-the-scenes fraud at EnvyTV.
EnvyTV was a pirated content material streaming MLM firm Sampson launched in 2019.
In November 2020 husband-and-wife Plaintiffs Mary Jane Beauregard and John Hugh Smith, filed swimsuit towards defendants:
- Clayton Sampson
- Elisha Sampson
- Envy TV and
- Envy Options
Citing Clayton and Elisha (proper) as “majority house owners and co-managers of EnvyTV, Beauregard and Smith allege they had been duped into investing in EnvyTV.
In December 2018, the Sampsons had been in search of traders in EnvyTV.
The Sampsons knew the Plaintiffs by way of a mutual acquaintance, Eddie Freeman, and on account of their events’ involvement in one other community advertising firm.
Freeman (proper) was cited as an EnvyTV co-founder on the corporate’s web site at launch.
The Sampsons promised and represented to Plaintiffs that in the event that they invested $100,000, in alternate they and Mr. Freeman would obtain a 2% curiosity in EnvyTV plus superior “grasp” Affiliate positions within the EnvyTV Affiliate multilevel hierarchy.
Breaking down the authorized converse, the Sampsons had been promoting a prime place in EnvyTV’s compensation for $100,000.
Of be aware is Beauregard and Smith (proper) claiming Freeman assigned them his “1% curiosity in EnvyTV and all claims associated to [his] 1% possession curiosity” in Could 2020.
In reliance upon the Sampsons’ representations, Plaintiffs paid the Sampsons $100,000 through wire switch on December 14, 2018.
Following their funding, Plaintiffs had been positioned at superior “grasp” Affiliate positions within the EnvyTV Affiliate multilevel hierarchy as promised by the Sampsons.
Plaintiff Smith was positioned at a fifth place (#10008) and Beauregard was positioned at a sixth stage place (#100007).
Within the EnvyTV hierarchy, all new Associates had been to be positioned below the Plaintiffs’ fifth and sixth stage Affiliate positions.
This could be sure that Plaintiffs financially benefited from the gross sales of different EnvyTV Associates because the EnvyTV Affiliate grew started to develop [sic].
Beauregard and Smith declare they had been “instrumental” in “constructing” EnvyTV. Corey Sampson nevertheless didn’t see it that approach.
A number of months following Plaintiffs’ funding in EnvyTV, Defendant Clayton Sampson grew to become sad with Plaintiffs as a result of he didn’t suppose they had been enrolling sufficient new Associates into the EnvyTV multi-level program.
On account of Defendant Clayton Sampsons’ perception … Clayton and Elisha Sampson started manipulating the EnvyTV compensation plan and transferring the Plaintiffs’ grasp Affiliate positions to scale back the commissions paid to Plaintiffs.
Because of this, the commissions paid to Plaintiffs had been far lower than what they had been entitled to obtain from the grasp positions they acquired in reference to their $100,000 fee to the Sampson Defendants.
Beauregard and Smith declare their EnvyTV commissions ceased fully in “early March 2020 … with none prior written discover or communication”.
Beauregard and Smith allege that, regardless of paying $100,000 to the Sampsons, they
by no means supposed to promote a 2% curiosity in EnvyTV once they solicited $100,000 from Plaintiffs in December 2018.
Immediately EnvyTV doesn’t exist. Perusal of Clayton Sampson’s social media reveals he’s selling one thing referred to as EnvySolutions.
Beauregard and Smith declare EnvySolutions is successfully EnvyTV by one other title.
The Sampson Defendants’ efforts to disclaim Plaintiffs’ possession rights in EnvyTV is additional confirmed by the now defunct standing of EnvyTV and the concurrent rise of Defendant EnvySolutions, a functionally similar entity engaged in the identical enterprise as EnvyTV.
EnvySolutions was fashioned in January 2020, simply because the Sampson Defendants had been starting to demote and manipulate the Plaintiff’s Affiliate positions and EnvyTV fee funds.
Sampson is the President of EnvySolutions and the providers and Affiliate compensation plan provided by EnvySolutions are strikingly much like these provided by EnvyTV.
It seems that the Sampson Defendants have recreated the enterprise of EnvyTV by way of EnvySolutions as one other approach to lower the Plaintiffs out of the enterprise they invested in.
A go to to EnvySolutions’ web site reveals a “be part of us” message however no additional particulars (or approach to truly be part of the corporate):
Whatever the present standing of EnvySolutions, Beauregard and Smith allege the Sampsons’ conduct constitutes “a breach of their fiduciary duties”.
Particularly, throughout eleven causes of motion, Beauregard and Smith accused the Sampsons of:
- breach of contract;
- fraud;
- fraud by non-disclosure;
- breach of fiduciary responsibility and conspiracy;
- violating the Nevada Uniform Securities Act; and
- breach of implied covenant of fine religion and truthful dealing
The case went to bench trial in January 2024. The case was determined in favor of Plaintiffs Beauregard and Smith on January thirty first, 2024.
The Sampsons appealed the judgment in February 2024. The Ninth circuit dismissed the attraction in Could 2024.
Default judgment was granted towards the Sampson and EnvyTV defendants on September twenty third, 2024.
The judgment order awarded Beauregard and Smith with:
- $100,000 in consideration paid
- $28,876.71 in curiosity
- $15,679.13 in prices
- $301,103.75 in attorneys’ charges
- $284,717.28 in compensatory damages for unpaid commissions
- $63,393.60 in curiosity on awarded compensatory damages
- $8175 in arbitration prices and
- $8500 for “discovery abuse”
An addition to all that an award of punitive damages stays excellent. The court docket has scheduled a listening to punitive listening to for February eleventh, 2025.