Articles under ‘USFIA’:

USFIA forensic accounting to be completed Jan 2017

In his 5th Interim Report, the USFIA Receiver has indicated he expects forensic accounting to be completed around January 2017. Once finalized, the accounting will confirm the entire scope of the USFIA enterprise, the number of investors, or specific amounts invested by investors and distributed to them. As per current accounting progress, the Receivership has [Continue reading…]

SEC: “Undisputed evidence shows Chen operated a pyramid scheme”

Last week we covered the SEC’s Motion For Summary Judgement against USFIA and owner Steve Chen. Chen had filed an opposition to the motion on November 7th which, in my opinion, raised a number of flawed arguments. The SEC has addressed these arguments in a reply brief filed on November 14th.

SEC file for USFIA summary judgement, Steve Chen opposes

On October 26th the SEC filed for summary judgement against USFIA and owner Steve Chen. Chen responded in opposition to the SEC’s filing on November 7th. Both filings are pretty long, coming in at thirty and twenty-six pages respectively. Below I’ve separated both filings into headers, with my own conclusion at the end.

John Wuo fined $2000 by FPPC (USFIA case updates)

It wasn’t long into researching BehindMLM’s USFIA review that came across photos of John Wuo with USFIA management. Wuo was an elected government official of the City of Arcadia, California, so his potential involvement in USFIA was concerning. As USFIA’s presence continued to grow in Arcadia, residents began to question Wuo’s involvement in the scheme. Less [Continue reading…]

Deposition discovery fails to delay USFIA Ponzi case

A joint-stipulation filed by the SEC and Steve Chen on September 30th had asked for a delay in proceedings of four months. Judge Klausner has rejected the rescheduling and preserved the original January 10th trial date.

USFIA Ponzi fraud climbs to $180 million

Back in July the USFIA Receiver estimated that the Ponzi scheme took in $164 million. This was a huge increase from the $32 million the SEC estimated when they shut down the scheme. In his fourth interim report, filed on September 2nd, the Receiver now estimates USFIA took in at least $180 million.

USFIA Ponzi fraud balloons out to $164 million

On July 7th the USFIA Receiver filed his third report and recommendations. Spanning the first quarter of 2016, the Receiver’s report covers the scope of USFIA’s business operations, the legitimacy of USFIA, seized real-estate, Steve Chen’s lawyer funds, USFIA investor funds spent on Chen’s family and a Mercedes S550 belonging to Chen.

Go Luck Review : Resurrecting the USFIA amber Ponzi corpse

There is no information on the Go Luck website indicating who owns or runs the business. The Go Luck website domain (“”) was registered on the 14th of October 2015, however the domain registration is set to private. Despite the Go Luck website being entirely in Chinese, Alexa surprisingly estimates that over half of the [Continue reading…]

SEC vs. USFIA trial scheduled for January 2017

Following a Joint Report filed by the SEC, USFIA and Steve Chen, a trial date has been scheduled for January 10th, 2017 Note that this is the SEC civil action against USFIA and Chen, with details of criminal proceedings yet to surface.

Steve Chen under FBI & IRS criminal investigation

On February 19th, Steve Chen filed a sealed motion to stay the SEC’s case against himself and USFIA. Over the course of the past month, a whole bunch of correspondence regarding the motion has been filed by both Chen and the SEC. The SEC have opposed Chen’s motion, with Chen filing several memorandums in support [Continue reading…]