Extended USFIA claim deadline results in low quality claims
Despite the best intentions behind extending the USFIA victim claim deadline, unfortunately it appears to have been mostly a waste of time and money.
In light of the extension, the USFIA Receiver reports he’s received “low quality claims” that will be “time-consuming” to sort through.
A big part of the problem is that USFIA primarily targeted gullible investors living in China.
Potential Chinese investors were flown in, given the “wow, America!” treatment, strongly encouraged to invest in USFIA and flown out again.
These investors are difficult to get in contact with and despite efforts to provide them relevant information in Chinese, still have trouble understanding what is required of them.
For example, many claimants filed their claims in Chinese, submitted multiple claims, or submitted claims on behalf of other investors.
Many investors have multiple member identification numbers, or the member identification number does not match the claimant’s name.
Moreover, many claimants failed to provide proof of their investment, and only a very small amount of claimants disclosed payments that they received from the Receivership Entities.
There were also a large volume of paper claims filed and claimants did not avail themselves of the online portal for submitting claims, which necessitated the manual input of claims by the Receiver’s staff.
That’s on the front-end. Having now received the claims, the Receivership now has the task of sorting through them – all the while billing funds that are, let’s face it, probably better put towards legitimate claim distribution.
As of December 31st, 2018, the USFIA Receivership is sitting on $58.7 million.
After the latest round of claims has been processed, next on the Receiver’s roadmap is certifying disallowed claims.
After that the Receivership will be working towards ‘a plan to distribute the recovered proceeds to investors and other allowed claimants‘.
There is no timeframe for this but we’ll do our best to keep you updated.