Steve Chen, the ringleader behind the $100 million-plus Gemcoin fraud of 2013-2015, agreed to plead responsible Wednesday to tax evasion and conspiracy to commit wire fraud.
The 62-year-old San Gabriel Valley resident will face a minimal of 10 years in jail, in accordance to the Department of Justice (DOJ).
As a part of his plea settlement, Chen admitted to working and selling U.S. Fine Investment Arts (USFIA), an Arcadia, Calif., firm that peddled traders its “Gemcoin” digital forex, backed by gem stones that didn’t truly exist.
The multi-level advertising and marketing scheme attracted 70,000 victims worldwide in its two years of operation for a complete haul $147 million, in accordance to the DOJ.
According to the DOJ, a part of Chen’s plea acknowledges he reported revenue of $138,000 in 2014, far lower than the $4.eight million he truly took in that 12 months.
“Mr. Chen lured sufferer traders across the globe by making a mirage fabricated from trendy cryptocurrency options and dynamic advertising and marketing techniques,” stated Paul Delacourt, the assistant director of the Federal Bureau of Investigation’s Los Angeles Field Office, within the DOJ assertion.
USFIA additionally triggered a whirlwind of chaos in native California politics. An Arcadia councillor loosely related to the mission resigned underneath strain lower than per week after the U.S. Securities and Exchange Commission raided USFIA’s headquarters in 2015.
Read the complete plea settlement beneath:
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