Articles under ‘USFIA’:

USFIA Receiver seeks 90 day victim claim submission extension

Despite being able to file claims since April, a surprisingly small number of victims have thus far sought to recoup their losses. Owing to a “substantially lower than anticipated” number of submitted claims, the Receiver is seeking a 90 day submission extension.


USFIA Receiver files second clawback suit against Li Zhao (~$370,000)

The second individual subject to clawback litigation in the USFIA case, is Steve Chen’s wife, Li Zhao (aka Jennifer Zhao). Through a number of shell companies, Zhao received and/or benefited from millions of dollars in stolen investor funds. The primary company used to launder investor funds for the benefit of Zhao was Ally Investors LLC. [Continue reading…]


USFIA victim claim forms published, proof of claim instructions provided

The USFIA Receivership has published victim claim forms and proof of claim instructions.


USFIA victim claims process approved, deadline set

Following on from a USFIA victim claims process submission announced in late January, the submitted process received have received court-approval.


USFIA victim claims process to be submitted “in the coming days”

Although monetary relief is still a ways off, USFIA victims can probably except a claims process to go live before mid 2018. In his January 29th Tenth Interim Report, the USIFA Receiver claims he’s developed a “recommended claims process”. The claims process will be filed in court “in the coming days” and if approved, ‘will [Continue reading…]


USFIA victim claims process being developed

Good news for victims of the USFIA Ponzi scheme, a claim portal is likely to be opened sometime in the first quarter of 2018. That prediction is based off the USFIA Receiver’s Ninth Interim Report, which states:


USFIA Receiver seeks $5.3 million clawback from Steve Chen’s ex-wife

While gullible USFIA investors were lead to believe they were investing in GemCoin points backed by valuable amber, on the back-end Steve Chen was siphoning off millions of dollars to enrich himself and his family. One recipient of stolen USFIA investor funds was Wei He, Chen’s ex-wife. The USFIA Receiver alleges He received over five million [Continue reading…]


USFIA civil fraud charges settled for $200 million dollars

Back in January a proposed $145.4 million dollar settlement between Steve Chen and the SEC was filed. On March 13th Judge Klausner approved the settlement proposal and ordered Final Judgement against Chen.


$145.4 million USFIA settlement reached, pending approval

On January 9th, the day before a scheduled trial to determine monetary relief, the SEC and Steve Chen attended a settlement conference. A settlement was reached, pending formal approval by the Commission (SEC attorneys can’t accept a settlement agreement of their own accord). Unfortunately Commission approval of the settlement is anticipated to take “approximately six weeks”.


Chen fighting SEC on monetary relief (USFIA)

Despite having summary judgement granted against him, Steve Chen is still fighting the SEC in court. The SEC allege Steve Chen’s USFIA was ‘a massive pyramid scheme that defrauded myriad investors‘. Following Judge Klausner’s summary judgement ruling, this is no longer a point of contention. Rather Chen is challenging the SEC how much monetary relief he should [Continue reading…]