USFIA founder Steve Chen has died in prison. Following a guilty plea entered back in 2020, Chen was sentenced to to ten years in prison in 2021. The Bureau of Prison’s inmate search function reveals Chen, 65, died on November 19th. Chen’s cause of death is unknown. Chen, who also went by Li Chen and […]
USFIA Ponzi founder Steve Chen dies in prison Read More »
The USFIA Receiver’s 26th Interim Report details several distribution payment problems. The Receiver’s latest report was filed on December 5th. In it the Receiver reveals $51.3 million in distribution payments have been disbursed. Payments were made by check, Paypal or wire. A very large volume of checks have not been negotiated due to restrictions on
USFIA Receiver details problems with distribution payments Read More »
Following an agreement reached with the IRS, the USFIA Receiver has secured authorization to send out USFIA victim distribution payments. As per a June 9th order issued by the court; In accordance with the Original Plan, the prior orders of the Court, and the Stipulation, the Receiver is authorized to proceed with the distribution of
USFIA victim claim distribution payments approved Read More »
The USFIA Receivership and IRS have reached a settlement regarding tax claims held by the IRS. Pending court approval, this paves the way for USFIA victim distribution payments to go out. As per a stipulation filing on June 1st, the Receiver advises; The United States, on behalf of the IRS, the SEC and the Receiver
USFIA Receivership negotiates IRS settlement, seeks approval Read More »
The USFIA Receiver intends to file an Amended Distribution Plan (ADP). The ADP intends to deal with the IRS roadblock, currently holding up approved victim distribution payments. Last month we reported on the IRS roadblock. The Receiver’s proposed ADP will set aside $16.5 million as a “tax reserve”. $45.8 million will be paid out to
USFIA Receiver sets aside $15 mill to get on with distribution Read More »
Ongoing Receivership issues with the IRS are holding up distribution payments to USFIA victims. The issue between the USFIA Receivership and the IRS stems from a concern that, should the Receiver make distribution payments, unresolved tax liability might leave the Receivership on the hook. As detailed in the USFIA Receiver’s March 14th Twenty-Fourth Interim Report;
IRS holding up USFIA victim distribution payments Read More »
Steve Chen, founder of the USFIA Ponzi scheme, has been sentenced to ten years in prison. Chen has also been ordered to pay back $49.2 million in restitution. USFIA was a $147 million dollar Ponzi scheme. The SEC shut down USFIA in late 2015. In addition to civil fraud charges, Chen (right) was charged with
USFIA owner Steve Chen sentenced to ten years in prison Read More »
The FTC has issued at least 379 MLM companies with deceptive and/or unfair conduct notices. This was announced by the FTC on October 26th. If it slipped under your radar, you’re not alone. I learned of the FTC’s announcement via a tip sent in by a reader. At first I thought there was some funny
FTC sends 379 MLM companies deceptive/unfair conduct notices Read More »
USFIA victims are one step closer to distribution payments, following the Receiver’s filed plan of distribution. The USFIA Receiver’s plan was filed on December 7th, the day after BehindMLM reported $45.2 million in USFIA victim claims had been approved. As per the Receiver’s memorandum supporting the proposed plan, there is an estimated $65 million to
Victim distribution plan filed by USFIA Receiver Read More »
The USFIA Receiver has allowed victim claims totaling $45.2 million. As at November 9th, $15.3 million in claims and an additional $11.1 million in duplicate claims have been disallowed. The figures were provided by the Receiver in his Twentieth Interim Report, spanning the second quarter of 2020. Across related entities tied to USFIA founder Steve
$45.2 million in USFIA victim claims allowed Read More »
