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 dollars of invested USFIA funds is seeking full recovery.
In an October 17th motion seeking authority to pursue claims against He, the Receiver alleges He, her Wei He Trust and companies Ahomeland Inc. and Golden Ark Inc., received at least $5.3 million dollars of USFIA investor funds.
Forensic accounting has revealed He used the money to purchase two properties in California; a $950,000 home in Irvine and a $4.4 million home in Arcadia.
On top of that Chen paid He over a million dollars.
These payments were made over the course of years and appear to have been used to pay for, among other things, Wei He’s debit card, where she appears to have accrued thousands or tens of thousands of dollars in charges on a monthly basis, furniture and other expenditures for the properties, thousands of dollars in artwork, and various other charges.
The Receiver alleges that in exchange for these payments, USFIA and its investors received nothing.
Steve Chen simply used funds raised from investors to purchase the properties for Wei He and pay her personal expenses.
Upon approaching Wei He about returning assets purchased with stolen USFIA investor funds and payments she received, He was non-responsive.
Wei He has not agreed to turn over title of the properties or return any funds.
Rather, Wei He has demanded that she be allowed to pay the Receiver some undefined sum, and keep the properties, along with the benefit of any inherent increase in value since the properties were purchased.
Wei He has also contended that she is entitled to setoff for monies held in certain accounts that were frozen and turned over by the banks at the outset of this action.
Wei He has provided no legal or factual justification for retaining any increase in value sin the properties, nor has she provided any documentary evidence to show she is entitled to a setoff.
The Receiver is seeking clawback on the funds Chen paid He, with an ongoing investigation likely to reveal additional stolen funds.
Upon the granting of permission to pursue recovery against He, the Receiver intends to file a formal complaint within sixty days.
I can’t see why the court would deny the Receiver permission, meaning He’s days of life in luxury are likely numbered.
Hilarious how someone who’s only claim to millions of dollars is that she’s the ex-wife of a Ponzi mastermind, thinks she’s entitled to keep everything – with interest.
Update 28th November 2017 – As per a November 21st order, the USFIA Receiver has been granted permission to pursue claims against Wei He.