After initiating two rounds of compensatory disbursement to victims, the Receiver overseeing USFIA has submitted a petition to the court to approve the destruction of records and conclude the Receivership.
In the Final Report submitted by the USFIA Receiver on May 14th, a total of $63.3 million has been disbursed to victims of USFIA. This amount provides a 79.2% restitution to claimants deemed valid.
As stated on May 3rd, 2024, a balance of $1.7 million remains under the control of the USFIA Receivership. The Receiver “intends for this capital to be allocated towards making redressal payments to specific investors” and covering residual Receivership fees.
The residual funds totaling $527,796.42 are slated for delivery to the Securities and Exchange Commission, to be forwarded thereafter to the United States Treasury.
In a related sworn statement, also dated May 14th, the USFIA Receiver continues to call for approval to obliterate documents and to shut down the Receivership proceedings.
I am of the belief that the appropriate course of action is to settle administrative charges and expenses, submit the last tax returns, terminate the receivership case, and seek exoneration and relinquishment for the Receiver.
Initiated by Steve Chen in 2013, USFIA was a multi-level marketing Ponzi framework.
The scheme defrauded patrons of a staggering $197 million. From this grand sum, a mere $1.7 million were disbursed as MLM commissions and ROI withdrawals.
What remained of USFIA was dismantled by the SEC in the latter part of 2015. Subsequently, in 2020, Steve Chen entered a guilty plea for charges associated with USFIA.
Chen received a decade-long prison sentence in February 2022, but he passed away a short ten months into his sentence in November 2022.
Subject to the court’s acquiescence, the closure of the Receivership concludes TRUST’s coverage on the USFIA affair.