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US Fine Investment Arts, Inc.

  512 inquiries |
Ponzi Scheme Business Opportunities |   Business Alert

135 East Live Oak
Arcadia, CA 91006
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(626) 321-4377

http://www.usfiainc.com

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F

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Complaint Experience

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Complaint Resolution Index (CRI)

Membership Information

This business is not a member of Business Consumer Alliance. This fact does not disparage the company in any way.

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Complaints and Resolutions

Complaint Experience

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Complaint Resolution Index (CRI)

BCA's Summary and Analysis:

We have received no complaints against this company.

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Complaint Closing Statistics

0 complaints against US Fine Investment Arts, Inc. closed in last 3 years.
Complaints Type of response
0 Making a full refund, as the consumer requested
0 Making a partial refund
0 Agreed to make an adjustment
0 Refusing to make an adjustment
0 Refuse to adjust, relying on terms of agreement
0 Unanswered

Other Information

Company Info

This company's business is operating a ponzi scheme. US Fine Investment Arts, Inc., claims to manufacture and retail amber gemstone jewelry. GemCoin is claimed to be virtual currency.

Primary Contact: Steve Chen (Owner/CEO/President)
Business Started: 9/2/2010
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Licensing

We know of no licensing or registration requirement for companies engaged in this company's stated type of business.

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Government Actions

Agency: U. S. Securities & Exchange Commission~Description:

~ The Securities and Exchange Commission (“SEC”) filed fraud charges on October 1 2015 against an alleged international pyramid scheme that defrauded investors of over $32 million. The complaint filed in a Los Angeles federal court accuses CA based US Fine Investment Arts Inc. (“USFIA”) its principal Steve Chen and 12 affiliated businesses of misleading investors about a lucrative initial public offering (“IPO”) for USFIA that never occurred and about claims to own or control amber deposits worth billions of dollars. The assets of the companies and Chen have been frozen and the SEC seeks preliminary and permanent injunctions disgorgement of allegedly ill-gotten gains with prejudgment interest and civil penalties.

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~ According to the SEC’s suit since at least April 2013 USFIA and Chen’s other entities have raised more than $32 million from investors in and outside the U.S. Buy-in amounts range from $1 000-30 000. Chen falsely promoted USFIA as a legitimate multi-level marketing company that owns several valuable amber mines in Argentina and the Dominican Republic and other assets worth $50 billion. Investors were guaranteed that an investment in USFIA was guaranteed to increase in value sixty four times over a very short period that USFIA was going to conduct an IPO in the near future and that investors would receive or be entitled to receive pre-IPO shares in USFIA that would increase in value once the company went public. No IPO ever took place.

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~ In September 2014 investors were told that instead of cash or shares they would receive a cryptocurrency known as "GemCoins" in exchange for their investment in USFIA which would greatly increase in value. Chen told investors that the U.S. government had purchased 70% of GemCoins in circulation and a 6 400% profit was guaranteed according to promotional material. In reality GemCoins are valueless. In addition investors typically received an amount of amber equal to 30% of their investment. Upon obtaining appraisals of the amber investors learned that the amber was practically worthless.
~ View the SEC Complaint here.

~Date of Action: 9/22/2015~~Agency: California Department of Business Oversight~Description:

On October 1 2015 the California Bureau of Business Oversight issued a "Desist and Refrain Order" against USFIA Inc. Steve Chen Leonard Stacy Johnson and Weiwen (Wayne) Zhao alleging they engaged in the offer and sale of unqualified securities in the form of USFIA investment contracts. The order also alleges they offered and sold securities in the form of USFIA investments contracts by means of written and oral communications including untrue statements of material fact and omission of material facts necessary to make the statements not misleading in violation of the law.

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They are ordered to desist and refrain from the further offer or sale of securities in the State of California including but not limited to USFIA investment contracts unless and until qualification has been made under the law or unless exempt. They are also ordered to desist and refrain from making untrue statements of material facts or ommissions of facts relating to said securities. 

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Details of the order are available here.

~Date of Action: 10/1/2015

Comments and Analysis

Many Ponzi schemes share common characteristics. Here are some tell tale warning signs to be aware of:~~-High investment returns with little or no risk. Every investment carries some degree of risk and investments yielding higher returns typically involve more risk. Be highly suspicious of any "guaranteed" investment opportunity.~~-Overly consistent returns. Investment values tend to go up and down over time especially those offering potentially high returns. Be suspect of an investment that continues to generate regular positive returns regardless of overall market conditions.~~-Unregistered investments. Ponzi schemes typically involve investments that have not been registered with the Securities and Exchange Commission or with state regulators. Registration is important because it provides investors with access to key information about the company's management products services and finances.~~-Unlicensed sellers. Federal and state securities laws require investment professionals and their firms to be licensed or registered. Most Ponzi schemes involve unlicensed individuals or unregistered firms.~~-Secretive and/or complex strategies. Avoiding investments you do not understand or for which you cannot get complete information is a good rule of thumb.~~-Issues with paperwork. Do not accept excuses regarding why you cannot review information about an investment in writing. Also account statement errors and inconsistencies may be signs that funds are not being invested as promised.~~-Difficulty receiving payments. Be suspicious if you do not receive a payment or have difficulty cashing out your investment. Keep in mind that Ponzi scheme promoters routinely encourage participants to "roll over" investments and sometimes promise returns offering even higher returns on the amount rolled over.~~-It comes through someone with a shared affinity. Fraudsters often exploit the trust derived from being members of a group that shares an affinity such as a national ethnic or religious affiliation. sometimes respected leaders or prominent members may be enlisted knowingly or unknowingly to spread the word about the "investment".

Other Considerations

Whether your a novice or seasoned investor being proactive can help you avoid a Ponzi scheme and other investment frauds. Here are 5 questions to consider before investing any of your money:~~1. Is the seller licensed?~2. Is the investment registered?~3. How do the risks compare with the potential rewards?~4. Do I understand the investment?~5. Where can I turn for help?~~

For more information visit the Securities and Exchange Commission's guide for "Questions You Should Ask About Your Investments"

Industry Resources
Advertising Reviews
Additional Info

DBAs:

GemCoin
Quail Ranch Golf Course, LLC
China-US Consultation Association
Amkey, Inc
Apollo REIT II, LLC

Websites:

Contacts:

Weiwen "Wayne" Zhao (Executive/Spokesperson)
Leonard Johnson (Vice President of Investor Relations/ Spokesperson)

Other Categories:

Addresses: