USFIA Receiver claim updates ($30 mill shell company)
As part of a May 31st filed Status Report, the USFIA Receiver has provided an update on victim claims.
Following issues spanning multiple claim USFIA victim deadline extensions, the claims submission process was finalized on January 4th, 2019.
The total number of claims filed is 6775, which unfortunately is ‘far less than the Receiver’s understanding of the number of investors‘.
Reasons put forth by the Receiver to explain this
It would appear that there are several reasons for the relatively small number of claims.
Many investors are located in China and do not have access to information readily available to investors outside of China.
The Receiver is informed that it is difficult for investors in China to get access to the internet and many are forced to go to underground VPN networks.
Many investors communicate through third party intermediaries who often times provide conflicting or inaccurate information.
Investors also fear repercussions from the Chinese government, as well as United States immigration and taxing authorities.
Significant sums of money also appear to have been invested via shell companies.
Ongoing forensic account analysis has recently revealed around $30 million was invested into USFIA through Vecast Inc.
These funds invested by Chinese nationals and laundered out of the country through Vecast Inc.
Vecase Inc. itself appears to hold no value, having been set up for the sole purpose to “disguise the flow of funds out of China”.
These developments have opened up claims from Chinese USFIA affiliates who invested through Vecast Inc.
Despite the claim submission process deadline expiring six months ago, the Receiver is committed to seeking approval for any Vecast Inc. related claims.
What impact these claims might have on the total amount claimed by USFIA affiliates remains to be seen.
Based on submitted claims, which are still being analyzed, the Receiver anticipates around $50 million in losses being claimed.
As of March 31st, 2019, the USFIA Receivership is sitting on $59 million in recovered funds.