Clayton and Elisha Sampson have been ordered to pay $750,000 in punitive damages.
In awarding punitive damages on September thirtieth, the courtroom famous discrepancies within the Sampsons’ testimony and failure to supply requested monetary information.
Discrepancies within the monetary standing of Defendants has been attributable to the contradictory testimony of Defendants and the failure of Defendants to supply full information throughout discovery and in response to Courtroom orders.
For instance, Elisha Sampson argued {that a} judgment involving fraud could have an effect on her means to promote life insurance coverage insurance policies. However when questioned by Plaintiffs’ counsel as as to whether she had been in a position to promote life insurance coverage within the final yr, Elisha testified that she had completed so.
Moreover, proof was offered on the January 2024 trial displaying that Clayton Sampson filed a chapter petition on December 14, 2018.
This was identical date on which the Sampsons had been discussing an funding in EnvyTV with the Plaintiffs.
In his chapter petition, Clayton Sampson said, beneath penalty of perjury, that his estimated belongings had been price between $0 and $50,000 as of December 14, 2018.
Later throughout trial, Clayton Sampson contradicted the sworn statements made in his 2018 chapter petition, testifying that the worth of his crypto holdings was “within the neighborhood” of $200,000 or $300,000 on the time EnvyTV was shaped in December 2018.
Clayton Sampson equally offered contradictory testimony concerning his crypto holdings on the February 2025 punitive damages listening to.
On direct examination, Clayton Sampson testified that his crypto account stability as of the date of the listening to was 1,273.31 and this was the extent of his crypto holdings.
Later, on crossexamination, Clayton Sampson confirmed that his prior testimony concerning 1,273.31 in his crypto account referred to the variety of models of crypto held by Mr. Sampson, not the worth of his crypto holdings.
However this testimony, previous to the conclusion of the listening to, the Courtroom requested Clayton Sampson to make clear his testimony concerning his crypto holdings.
In response to the Courtroom’s inquiry, Clayton Sampson contradicted his prior sworn testimony and testified that his reference to 1,273.31 in his crypto account referred to the greenback worth of his crypto holdings.
Defendants [also] failed to supply 2021 company and private tax returns.
In response to the Courtroom’s order for an accounting, the Sampsons produced a Revenue and Loss Assertion titled “Clayton and Elisha Enterprise Exercise” for the interval January 2019-February 2024.
This doc was admitted into proof as Plaintiffs’ Exhibit 94. The P&L Assertion displays revenue of virtually $4.8 million, the vast majority of which is from EnvyTV subscriptions.
Different objects within the P&L revenue part seek advice from revenue generated from different Envy-related entities equivalent to EnvyCares and EnvyConnect.
There isn’t a reference to revenue generated from enterprise alternatives Clayton Sampson has publicly promoted via an internet platform referred to as “EnvySolutions Worldwide.”
By way of that platform, Clayton Sampson promoted varied earnings alternatives identified by names equivalent to “EtherConnect,” “D.AI.SY,” “Omega Digital” and “Meta Dealer 5.” Id. The P&L Assertion doesn’t replicate any revenue from these different Envy-related enterprise ventures.
Meta Dealer 5 is a free on-line buying and selling software program platform. EtherConnect, Daisy International and Omega Digital are MLM crypto Ponzi schemes.
It’s unclear whether or not the Sampsons (proper) reported crypto holdings and cash stolen via MLM crypto Ponzi schemes to the IRS.
The P&L Assertion additional displays “prices of products offered” consisting of greater than $1.3 million in EnvyTV Affiliate Commissions.
Proof at trial confirmed that each Clayton and Elisha Sampson obtained important EnvyTV Affiliate commissions, and their commissions elevated once they demoted or decreased the Plaintiffs’ Affiliate positions.
But the P&L Assertion doesn’t replicate any EnvyTV Affiliate commissions paid to Clayton and Elisha Sampson.
In conclusion, the courtroom decided;
The underlying conduct, fraud and securities fraud, offends the general public’s sense of justice and propriety. Subsequently, a punishing award of punitive damages is critical to discourage future misconduct of this sort.
The conduct of Defendants throughout discovery, at trial, and through post-trial discovery and hearings means that the Courtroom ought to award a bigger quantity of punitive damages.
The failure of Defendants to be forthright and clear in explaining their monetary scenario and accounting for the hundreds of thousands of {dollars} gathered throughout their scheme buttress the Courtroom’s underlying discovering of fraud and its dedication that punitive damages needs to be awarded.
Accordingly, the Courtroom orders an award of punitive damages within the quantity of $750,000.00, practically two instances the quantity of compensatory damages ($100,000.00 in consideration + $284,717.28 unpaid affiliate commissions).
Plaintiffs Mary Jane Beauregard and John Hugh Smith filed go well with towards the Sampsons in 2020, alleging they’d been duped into investing in EnvyTV.
EnvyTV was a pirated content material streaming MLM firm Clayton Sampson launched in 2019.
The awarded $750,000 in punitive damages follows a $810,445 default judgment handed down final September. This brings the entire quantity awarded to Beauregard and Smith to $1.56 million.
In line with his LinkedIn profile, Clayton Sampson has been a promoter of World Monetary Group (aka World Management Group) since 2004.
World Monetary Group is an MLM firm that markets monetary and insurance coverage companies. As a promoter, Clayton represents he holds the rank of Senior Government Chairman.
