USFIA preliminary injunction granted, Receiver permanent
Following consent by Steve Chen, a preliminary injunction was granted against USFIA and related entities on the 6th of October.
The preliminary injunction makes the conditions of the previously granted TRO permanent, which
- freezes Steve Chen and USFIA’s assets
- establishes a Permanent Receiver
- prohibits Chan and USFIA from destroying evidence (destruction of documents) and
- requires Chen and USFIA to provide the SEC with detailed accounting records within 30 days
Pending the outcome of a trial, Chen and USFIA are also prohibited from
- selling, offering the sale of or buying securities
- committing any further fraud and
- obtaining money or property via untrue statements and/or deception
The current status of Chen, specifically whether or not he is still in the US, is unknown.
Footnote: Our thanks to Don@ASDUpdates for providing a copy of Judge Klausner’s October 6th Preliminary Injunction order.
Update 22nd October 2015 – Steve Chen, through his attorneys, has requested an time-extension to file his response to the SEC lawsuit.
An extension to November 12th was requested, which the SEC has assented to.