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Thursday, January 5, 2017 - January 11, 2017
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Gem Coin Ruled Pyramid Scheme by Federal Judge
Recently, in the United States District Court for the Central District of California, the Federal Court granted the SEC’s Motion for Summary Judgment in the matter of Securities and Exchange Commission v. Steve Chen. The SEC’s Motion for Summary Judgment was predicated on allegations that Chen, through his 12 entities, engaged in an international Ponzi Scheme, in which hundreds of thousands of investors worldwide were deceived into believing that they were purchasing membership interests in a multi-billion-dollar multinational company in the business of processing and selling amber and amber jewelry, with $50 billion in worldwide assets. However, in reality, Chen was operating a Ponzi Scheme with these companies, with total assets of about $77 million, in which he offered investors a “bonus program” to bring in new investors, whose investment would in effect pay off the investments of the earlier investors. As part of his scheme, Chen also offered Gemcoins, a cryptocurrency, to investors in exchange for their investment, which he represented would increase greatly in value and were backed by $5 billion in gemstones.
COMPLIMENTARY COPY VOLUME 21, NO. 1
New Arcadia Library and Museum Director Appointed The Library Board of Trustees has appointed Darlene Bradley to the position of Library and Museum Services Director after a nationwide search. Ms. Bradley is currently an Assistant Library Director and will succeed Mary Beth Hayes who retired on Dec. 30. The appointment was made effective on Dec. 31. SEE PAGE 10
The K-9 Program Returns to Arcadia
Gem Coin’s HQ was raided by federal agents on September 2015 in the ongoing investigation against the company that defrauded investors of thousands of dollars. - Photo by Terry Miller
In reality, the represented billions in gem stones and jewelry maintained by Chen at USFIA was valued by the SEC and amounted to little
more than $300,000. From Jan. 1, 2010 to 2015, approximately $195 million was received by the entities, with over 400
transfers of funds between the 12 entities in excess of $74 million, and another approximately $100 million in disbursements by the en-
tities, with only $19 million remaining in the accounts when Chen was stopped. SEE PAGE 11
The K-9 program is back in the Arcadia Police Department. Though police dog Zoli has only been on the job for a month, Sergeant John Bonomo, Supervisor of the program says other officers are “glad to have him on the force.” SEE PAGE 10