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 two counts of fraud.
Chen, who also goes by “Li Chen” and “Boss”, pled guilty to both charges in February 2020.
On January 11th 2021, Chen was sentenced to five years on both counts. Chen will serve time consecutively, resulting in an effective ten year prison sentence.
On August 11st, Chen’s judgment was amended to include the $49.2 million restitution order.
Chen presented himself to the Bureau of Prisons on July 26th, 2021. He is serving time at the federal prison in Lompoc, California.
Chen was 64 at time of incarceration. He will be 74 at time of his scheduled August 2029 release date.
Update 16th December 2022 – Steve Chen has died in prison.
How Chen passed is unclear but the BOP cites Chen’s date of death as November 19th, 2022.