Via Ally Buyers LLC and different shell firms, Steve Chen’s spouse, Li Zhao (aka Jennifer Zhao), acquired round $3.37 million in stolen USFIA investor funds.
In 2015 the USFIA Receiver recovered roughly $3.2 million from a secure deposit field and financial institution accounts held in Ally Buyers’ identify.
The seizure noticed Li Zhao, the first beneficiary of the funds, reply with fury and demand the funds be returned to her.
Roughly three years later, Zhao and the USFIA Receiver have lastly reached a settlement.
As a part of the proposed settlement, Zhao will relinquish her curiosity within the seized $3.2 million Ally Investor funds.
The settlement can even see the identical of Yanhong Wu and Qi Chen, two further beneficiaries of Ally Investor funds.
We don’t appear to know a lot about Wu and Chen, aside from they reside in China and are presumably near Chen’s spouse, Zhao.
The proposed settlement additionally stipulates the Receiver will drop a individually filed clawback lawsuit in opposition to Zhao, which sought to recuperate an extra $370,000.
The compromise is $3.2 million is returned to USFIA victims and Zhao retains the $370,000 stolen quantity.
It’s not an ideal settlement however seeing because the $370,000 has been laundered via a number of shell firms, maybe the only financially.
The Receiver believes the proposed settlement, which
(a) eliminates the Ally Claimants’ claims that roughly $3.2 million held by the Receiver belongs to them outright; and
(b) avoids expensive fraudulent switch litigation with Zhao with an unsure restoration, is in the most effective pursuits of the receivership property.
The proposed settlement between the USFIA Receiver and Li Zhao was filed on November twenty ninth. Approval by the courtroom stays pending.
Replace February sixth 2019 – The USFIA Receiver’s proposed settlement with Li Zhao was accredited on January ninth, 2019.