The USFIA Ponzi scheme’s originator, Steve Chen, was sentenced to ten years in jail.
Chen has also been sentenced to pay restitution of $49.2 million.
USFIA was a Ponzi fraud worth 147 million dollars. In late 2015, the SEC shut down USFIA.
Chen (right) was charged with two counts of fraud in addition to civil fraud accusations.
In February 2020, Chen, also known as “Li Chen” and “Boss,” pleaded guilty to both counts.
Chen was sentenced to five years in prison on both charges on January 11th, 2021. Chen will serve his term in a straight line, culminating in an effective ten-year sentence.
Chen’s judgment was revised on August 11th to include the $49.2 million reparation order.
On July 26th, 2021, Chen submitted himself to the Bureau of Prisons. He is currently incarcerated in the federal penitentiary in Lompoc, California.
Chen was 64 years old when he was imprisoned. At the time of his projected release in August 2029, he will be 74 years old.