Back in January a proposed $145.4 million dollar settlement between Steve Chen and the SEC was filed.

On March 13th Judge Klausner approved the settlement proposal and ordered Final Judgement against Chen.

As per Judge Klausner’s March 13th order, Steve Chen is “permanently restrained and enjoined” from further violating the Securities and Exchange Act.

On the money side of things Chen along with entity companies he previously owned were also held liable for a $51.2 million dollar disgorgement payment plus a $16.7 million civil fine.

$3.7 million dollars in interest in prejudgment interest was also awarded.

Chen has fourteen days from the order date (March 13th) to pay the judgement amount.

The SEC shall hold the funds, together with any interest and income

earned thereon (collectively, the “Fund”), pending further order of the Court.

It is expected the funds will be added to USFIA victim claim disbursements at a later date.

A separate consent filing was made on March 14th, stipulating consent to Final Judgement by USFIA, Alliance Financial Group, Amauction, Aborell Management, Aborell Advisors, Aborell Reit II, Ahome Real Estate, Alliance NGN, Apollo Reit I, Apollo Reit II, Amkey, US China Consultation Association and Quail Ranch Golf Course.

Collectively the defendant entities will pay $135.5 million in disgorgement plus $9.8 million in prejudgment interest.

Steve Chen’s interactions with the SEC during civil proceedings strongly suggested he was aware of or suspected criminal charges will follow at some point. As at the time of publication however, they’ve yet to materialize.

🤖 Quick Answer

What was the total settlement amount in the USFIA civil fraud case against Steve Chen?
The settlement reached $200 million dollars, comprising a $145.4 million settlement approved by Judge Klausner on March 13th, plus a $51.2 million disgorgement payment and $16.7 million civil fine. An additional $3.7 million in prejudgment interest was awarded, with payment required within fourteen days.

What restrictions were imposed on Steve Chen following the March 13th court order?
Judge Klausner permanently restrained and enjoined Steve Chen from further violating the Securities and Exchange Act. The injunction serves as a permanent legal prohibition against future securities law violations by Chen and related entity companies.

How were the settlement funds to be managed according to the court order?
The SEC was designated to hold all settlement funds, including the disgorgement and civil fine payments, together

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