Welcome to the USFIA, Inc. Receivership Website                                                                                   This website was last updated:  February 26, 2017.

This website has been established to facilitate efficient communications between investors, creditors, former employees, and other interested parties and potential claimants of USFIA, Inc., all of its subsidiaries and affiliates (the "€œReceivership Entities"€), and Thomas Seaman (the "€œReceiver"€) who is serving as their permanent Receiver.  Mr. Seaman was appointed on September 28, 2015, by the Honorable R. Gary Klausner, Judge of the United States District Court for the Central District of California in a securities fraud enforcement action brought by the Securities and Exchange Commission (the "Commission").  The Commission has alleged in their COMPLAINT [Dkt. No. 3] that the defendants violated federal securities laws. Judge Klausner also ordered that the assets of USFIA, Inc. and its subsidiaries and affiliates be frozen and issued a TEMPORARY RESTRAINING ORDER [Dkt. No. 8] (the "TRO").
 
The Receiver will be providing periodic reports and accounting of funds and other assets taken into his possession.   At some time in the future depending upon the progress and status of the SEC'€™s action against the Defendants and further orders of the Court, the Receiver will provide investors, stakeholders and creditors with the ability to file claims in the receivership.  Case updates are listed below in reverse chronological order:
   
NEW!
RECEIVER'S SIXTH INTERIM REPORT AND RECOMMENDATIONS
On February 23, 2017, the Receiver filed his RECEIVER'S SIXTH INTERIM REPORT AND RECOMMENDATIONS [Dkt. No. 201]. The report covers the time period of October through December 2016.
     
NEW!
MOTION TO SELL FAIRVIEW CONDOMINIUM
  
MOTION TO SELL FAIRVIEW CONDOMINIUM
  
ORDER FOR SUMMARY JUDGMENT AGAINST STEVE CHEN
December 27, 2016:  On December 8, 2016, the Court granted the SEC’s motion for summary judgment against Chen, finding him liable on all of the claims asserted against him.  The Court found that Chen: (1) ran USFIA as a fraudulent pyramid scheme; (2) sold investors securities, whether characterized as investment contracts or pyramid scheme transactions, which were not registered with the SEC; (3) those sales were made though interstate commerce; (4) defrauded investors by failing to advise them that the pyramid scheme was destined to collapse; (5) made five material misrepresentations to investors in connection with the sale of the securities; (6) misused investor funds to fund a lifestyle that included multiple million-dollar mansions and luxury automobiles for him and his family; (7) acted with a high degree of scienter; (8) orchestrated the pyramid scheme over many years; and (9) showed no recognition of wrongdoing and no assurance against future violations.  ORDER RE: PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AS TO LIABILITY AND INJUNCTIVE RELIEF [Dkt. No. 167]; and the ORDER AS TO STEVE CHEN [Dkt. No. 168].  
    
FOURTH INTERIM FEE APPLICATION OF THE RECEIVER; FEE
APPLICATIONS OF RECEIVER’S ATTORNEYS AND CONSULTANTS
December 6, 2016:   The Receiver filed with the Court his RECEIVER'S FOURTH INTERIM FEE APPLICATION [Dkt. No. 161].  From July 1, 2016, through September 30, 2016 (the “Fourth Application Period”), the Receiver and his agents spent 1,974.4 hours executing the duties set forth in the Temporary Restraining Order entered on September 29, 2015 (“TRO”).  The Receiver seeks approval of 100% of fees and approval to pay 90% of fees. The Receiver does not seek reimbursement of any expenses.  

The Receiver’s attorneys, Allen Matkins Leck Gamble Mallory & Natsis, filed with the Court their FOURTH INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS, GENERAL COUNSEL TO THE RECEIVER FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 162].  During the Fourth Application Period the attorneys worked 96.5 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 80% of fees incurred and 100% of expenses incurred.

The Receiver’s attorneys, Squire Patton Boggs US LLP, filed with the Court their FIRST INTERIM APPLICATION OF SQUIRE PATTON BOGGS US LLP, LOCAL COUNSEL IN THE DOMINICAN REPUBLIC TO THE RECEIVER, FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 164].  During the First Application Period of April 11, 2016, through October 31, 2016, the attorneys worked 319.70 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 100% of fees incurred and 100% of expenses incurred.

The Receiver’s consultants, Berkeley Research Group, LLC (“BRG”), filed with the Court their THIRD INTERIM FEE APPLICATION OF BERKELEY RESEARCH GROUP, LLC [Dkt. No. 163].  Their application covers the period from May 1, 2016, through September 30, 2016, during which time the consultants worked 93.75 hours on behalf of the Receivership Entities.   In accordance with this Court’s orders, BRG now requests that the Court approve 100% of fees and expenses on an interim basis, and enter an Order authorizing the Receiver to pay 90% of the fees and 100% of expenses incurred.

Along with these applications the Receiver filed his NOTICE OF HEARING ON INTERIM FEE APPLICATIONS OF THE RECEIVER AND HIS PROFESSIONALS FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 165].  The hearing for these applications is calendared for 9:00 a.m., January 9, 2017.
       
RECEIVER’S FIFTH REPORT AND RECOMMENDATIONS
November 18, 2016: The Receiver filed his RECEIVER’S FIFTH REPORT AND RECOMMENDATIONS [Dkt. No. 141].
    
THIRD INTERIM FEE APPLICATIONS OF THE RECEIVER & HIS
ATTORNEYS; SECOND APPLICATION OF CONSULTANTS
September 12, 2016:   The Receiver filed with the Court his RECEIVER'S THIRD INTERIM FEE APPLICATION [Dkt. No. 102].  From April 1, 2016, through June 30, 2016 (the “Third Application Period”), the Receiver and his agents spent 1,254.2 hours executing the duties set forth in the Temporary Restraining Order entered on September 29, 2015 (“TRO”).  The Receiver seeks approval of 100% of fees and approval to pay 90% of fees. The Receiver does not seek reimbursement of any expenses.  

The Receiver’s attorneys, Allen Matkins Leck Gamble Mallory & Natsis, filed with the Court their THIRD INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS, GENERAL COUNSEL TO THE RECEIVER FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 103].  During the Third Application Period the attorneys worked 140.9 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 80% of fees incurred and 100% of expenses incurred.

The Receiver’s consultants, Berkeley Research Group, LLC (“BRG”), filed with the Court their SECOND INTERIM FEE APPLICATION OF BERKELEY RESEARCH GROUP, LLC [Dkt. No. 104].  Their application covers the period from February 1, 2016, through April 30, 2016, during which time the consultants worked 159.35 hours on behalf of the Receivership Entities.   In accordance with this Court’s orders, BRG now requests that the Court approve 100% of fees and expenses on an interim basis, and enter an Order authorizing the Receiver to pay 90% of the fees and 100% of expenses incurred.

Along with these applications the Receiver filed his NOTICE OF HEARING ON INTERIM FEE APPLICATIONS OF THE RECEIVER AND HIS PROFESSIONALS FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 105].  The hearing for these applications is calendared for 9:00 a.m., October 17, 2016.
  
RECEIVER’S FOURTH REPORT AND RECOMMENDATIONS
September 2, 2016: The Receiver filed his RECEIVER’S FOURTH REPORT AND RECOMMENDATIONS [Dkt. No. 99].
   
RECEIVER’S THIRD REPORT AND RECOMMENDATIONS
July 7, 2016: The Receiver filed his RECEIVER’S THIRD REPORT AND RECOMMENDATIONS [Dkt. No. 88]
   
FIRST INTERIM FEE APPLICATIONS OF THE RECEIVER, HIS ATTORNEYS & CONSULTANTS
April 4, 2016:   The Receiver filed with the Court his FIRST INTERIM FEE APPLICATION OF THE RECEIVER [Dkt. No. 74].  From September 29, 2016, through December 31, 2016 (the “First Application Period”), the Receiver and his agents spent 1,015 hours executing the duties set forth in the Temporary Restraining Order entered on September 29, 2015 (“TRO”).  The Receiver seeks approval of 100% of fees and approval to pay 90% of fees. The Receiver does not seek reimbursement of any expenses.  

The Receiver’s attorneys, Allen Matkins Leck Gamble Mallory & Natsis, filed with the Court their FIRST INTERIM FEE APPLICATION OF ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS, GENERAL COUNSEL TO THE RECEIVER FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 75].  During the First Application Period the attorneys worked 404.3 hours on behalf of the receivership estate and request the Court approve 100% of fees and expenses on an interim basis and an order authorizing the Receiver to pay, on an interim basis, 80% of fees incurred and 100% of expenses incurred.

The Receiver’s consultants, Berkeley Research Group, LLC (“BRG”), filed with the Court their FIRST INTERIM FEE APPLICATION OF BERKELEY RESEARCH GROUP, LLC [Dkt. No. 76].  Their application covers the period from September 28, 2015, through January 31, 2016, during which time the consultants worked 486.55 hours on behalf of the Receivership Entities.   In accordance with this Court’s orders, BRG now requests that the Court approve 100% of fees and expenses on an interim basis, and enter an Order authorizing the Receiver to pay 90% of the fees and 100% of expenses incurred.

Along with these applications the Receiver filed his NOTICE OF HEARING ON FIRST INTERIM FEE APPLICATIONS OF THE RECEIVER AND HIS PROFESSIONALS FOR PAYMENT OF FEES AND REIMBURSEMENT OF EXPENSES [Dkt. No. 77].  The hearing for these applications is calendared for 9:00 a.m., May 2, 2016.

RECEIVER’S SECOND REPORT AND RECOMMENDATIONS
February 26, 2016: The Receiver filed his RECEIVER’S SECOND REPORT AND RECOMMENDATIONS [Dkt. No. 53].

RECEIVER’S FIRST REPORT AND RECOMMENDATIONS
November 13, 2015:  The Receiver filed his RECEIVER’S FIRST REPORT AND RECOMMENDATIONS [Dkt. No. 19].

CASE INCEPTION 
September 28, 2015:  This website has been established to facilitate efficient communications between investors, creditors, former employees, and other interested parties and potential claimants of USFIA, Inc., all of its subsidiaries and affiliates (the "€œReceivership Entities"€), and Thomas Seaman (the "€œReceiver"€) who is serving as their permanent Receiver. Mr. Seaman was appointed on September 28, 2015, by the Honorable R. Gary Klausner, Judge of the United States District Court for the Central District of California in a securities fraud enforcement action brought by the Securities and Exchange Commission (the "Commission"). The Commission has alleged in their COMPLAINT [Dkt. No. 3] that the defendants violated federal securities laws. Judge Klausner also ordered that the assets of USFIA, Inc. and its subsidiaries and affiliates be frozen and issued a TEMPORARY RESTRAINING ORDER [Dkt. No. 8] (the "TRO").
    
The TRO restrains and enjoins the Defendants from violations of the securities laws and orders them to provide an accounting of their assets.  On October 5, 2015, the Defendant, Steve Chen, filed the CONSENT OF STEVE CHEN TO ENTRY OF PRELIMINARY INJUNCTION AND ORDERS: (1) FREEZING ASSETS; (2) APPOINTING A PERMANENT RECEIVER; (3) PROHIBITING THE DESTRUCTION OF DOCUMENTS; AND (4) REQUIRING ACCOUNTINGS [Dkt. No. 11].  On October 6, 2015, Judge Klausner entered his PRELIMINARY INJUNCTION AND ORDERS: (1) FREEZING ASSETS; (2) APPOINTING A PERMANENT RECEIVER; (3) PROHIBITING THE DESTRUCTION OF DOCUMENTS; AND (4) REQUIRING ACCOUNTINGS [Dkt. No. 13] (the "PI").  

The Receiver is in the process of taking custody, control and possession of all assets of the receivership entities and their affiliates and subsidiaries including but not limited to the following entities:

                        USFIA, Inc.
                        Alliance Financial Group, Inc., a Delaware corporation* 
                        Amauction, Inc.
                        Aborell Mgmt. I, LLC
                        Aborell Advisors, I, LLC
                        Aborell REIT, LLC
                        Ahome Real Estate, LLC
                        Alliance NGN, Inc.
                        Apollo REIT I, Inc.
                        Apollo REIT II, LLC
                        Amkey, Inc.
                        US China Consultation Association
                        Quail Ranch Golf Club, LLC
 
          * The Defendant’s Delaware corporation, Alliance Financial Group, Incorporated, is not related to Alliance Financial Group, Inc., a California corporation, which is not a party to these proceedings.