SourcingOct 02, 2026
De Beers, National Geographic Society Renew Okavango Eternal Partnership The partnership, a pledge to protect Africa’s Okavango River Basin, has been extended for an additional five years.
CrimeJan 13, 2021
CA Man Sentenced in $147M Mining, Digital Currency Scam
Steven Chen got 10 years in prison for his role in a scheme to solicit money from investors using a fake digital currency backed by gemstones mined from non-existent sites.
Los Angeles—A California man has been sentenced to a decade in prison for his role in a scheme to cheat investors out of millions using a fake digital currency backed by gemstones.
The U.S. Attorney’s Office for the Central District of California announced Monday that 63-year-old Steven Chen of Bradbury, California pleaded guilty in June 2020 to one count of conspiracy to commit wire fraud and one count of tax evasion.
Chen was the owner and CEO of a company called U.S. Fine Investment Arts (USFIA), as well as six other companies that used the same address.
The attorney’s office said from July 2013 to September 2015, Chen, or “Boss” as he was also known, solicited investments in USFIA, ultimately obtaining about $147 million from 72,000 victims in what the office has called “one of the largest pyramid schemes ever prosecuted in [that] district.”
He falsely promoted USFIA as a successful multi-level marketing company that extracted amber and other gemstones from non-existent mines the company claimed to own in the United States, Dominican Republic, Argentina and Mexico.
Chen promoted his scam, prosecutors said, through a scheme in which compensation for recruiting other investors came primarily from new USFIA investor payments.
The investors were duped into buying investment “packages” ranging in price between $1,000 and $30,000, with each package supposedly comprised of amber and other gemstones as well as USFIA “points,” which could be converted into shares in the company when it went public.
Chen, however, never intended for the business to go public, the attorney’s office said.
USFIA also offered other bonuses, like cash, travel, luxury cars and homes, to investors who recruited others.
Starting in September 2014, Chen and others changed the promotion by offering “Gem Coins” instead of points.
They falsely ensured the coins were a legitimate digital currency backed by the company’s gemstone holdings. Chen also lied about the coins already being in wide circulation in the jewelry and finance industries.
According to prosecutors, USFIA did not generate any “significant revenue” from its business operations, apart from selling the investment packages.
It also said the amber and other gemstones provided in the packages—which Chen and his associates claimed they were mining—were bought from domestic and international suppliers and given “grossly inflated” prices.
And the “Gem Coins” were not circulated in any industry, weren’t accepted by any merchants and, essentially, have no economic value.
The
Editors' Picks
Sponsored by
attorney’s office said Chen also committed tax evasion when he reported his gross income in 2014 as $138,015, when it was actually was about $4.8 million, for which he owes nearly $1.9 million before interest and penalties.
U.S. District Judge John F. Walter, who handled Chen’s sentencing, ordered him to pay $1.9 million in restitution to the IRS and the judge scheduled a July 16 restitution hearing for USFIA investors who were victimized in the scheme.
Meanwhile, 54-year-old Leonard Stacy Johnson of Huntington Beach, California, whom prosecutors say helped promote USFIA and Gem Coins under Chen’s direction, pleaded guilty in July 2019 to one count of tax evasion and one count of making a false statement on an immigration document.
Johnson’s sentencing is scheduled for May 24.
U.S. District Judge John F. Walter, who handled Chen’s sentencing, ordered him to pay $1.9 million in restitution to the IRS and the judge scheduled a July 16 restitution hearing for USFIA investors who were victimized in the scheme.
Meanwhile, 54-year-old Leonard Stacy Johnson of Huntington Beach, California, whom prosecutors say helped promote USFIA and Gem Coins under Chen’s direction, pleaded guilty in July 2019 to one count of tax evasion and one count of making a false statement on an immigration document.
Johnson’s sentencing is scheduled for May 24.
More on Crime
The Latest
MajorsOct 02, 2026
Pandora Opens New $150M Manufacturing Facility in VietnamThe new facility, its first outside of Thailand, will boost its manufacturing capacity by 50 percent.
TrendsOct 02, 2026
Hearts On Fire Celebrates 30th Anniversary With Heart PendantThe special-edition “Dream” pendant, our Piece of the Week, was created to mark Hearts On Fire’s 30-year milestone with 30 diamonds.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
SurveysOct 01, 2026
Rolex Ranks Among Most Recommended Brands in US, Survey Says YouGov’s 2026 U.S. Most Recommended Brands report’s out, and a fast-fashion giant is sitting at No. 1 while Rolex is just shy of the top 5.
Weekly QuizOct 01, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingOct 01, 2026
Columbia Gem House Opens ‘Cutting Toward Change’ FundraiserProceeds from its jewelry raffle will benefit an organization working in India to combat silicosis, a lung disease affecting stone cutters.
TrendsOct 01, 2026
Carolina Hurricanes’ Championship Ring Reveals Hidden Hockey Puck PendantThe rings, crafted by Jason of Beverly Hills, celebrate the hockey team’s Stanley Cup win with design elements that honor its traditions.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
TrendsOct 01, 2026
Amanda’s Style File: October’s Color Range This roundup of birthstone jewelry for October features vibrant tourmalines and opals with personality.
SourcingSep 30, 2026
Botswana’s President, De Beers CEO Say Diamond Demand Is RecoveringPresident Duma Boko spoke at back-to-back events in the city last week, touting Botswana’s stability and the diamond “bounceback.”
CollectionsSep 30, 2026
Oscar Heyman’s Holiday Book Is ‘A Living Archive’ The catalog showcases 112 new, one-of-a-kind pieces amid highlights from the jeweler’s historic archive.
SourcingSep 30, 2026
Gemfields Posts $98.5M Loss, Writes Down Value of Ruby MineIts Montepuez Ruby Mining operation in Mozambique, which is not yielding enough high-quality rubies, has taken a $125 million hit.
SurveysSep 30, 2026
Consumer Confidence Falls to 12-Year Low in SeptemberThose surveyed were worried about the present and the future, with write-in responses mentioning high oil and gas prices.
Events & AwardsSep 30, 2026
Jewelers of America, JA New York to Host Networking EventThe event will take place on the evening of Oct. 26 in New York City.
IndependentsSep 29, 2026
Christy Bromberg, Longtime Gift Buyer for Underwood Jewelers, Dies at 68She is remembered for her joie de vivre, upbeat personality, genuine interest in other people, and love of the Alabama Crimson Tide.
AuctionsSep 29, 2026
Dionne Warwick’s Jewelry Goes Up for AuctionOnline bidding is open now for Julien’s sale of items owned by the “Walk On By” singer, whose final album comes out this fall.
Events & AwardsSep 29, 2026
Matt Stuller to Receive 2027 Gem Award for Lifetime AchievementThe founder and executive chairman of Stuller Inc. is being honored for his impact on the jewelry industry at the 25th annual Gem Awards.
ColumnistsSep 29, 2026
Your Holiday Marketing Has a Bridal Blind SpotDecember is the most popular month to propose, and jewelers need to keep that in mind when planning their holiday marketing.
AuctionsSep 29, 2026
If You Love Cats, This Jewelry Auction Is for YouCat ladies of the jewelry world, unite. Sandy Lerner’s collection of cat jewelry and other objects is going up for auction Wednesday.
CollectionsSep 28, 2026
De Beers London Drops Water-Inspired High Jewelry Collection“Vibrations” features several firsts for De Beers’ high jewelry, including the use of chalcedony and diamonds sourced from artisanal miners.
CollectionsSep 28, 2026
Jessica McCormack Turns to Classic Motif for New CollectionThe “Bows” collection features three interpretations of the bow motif designed with Georgian and Victorian influences.
Events & AwardsSep 28, 2026
Guy Borenstein, Troy Underwood Among the Professionals Honored at AGS Conclave 2026The American Gem Society recognized industry members, one Guild, and a law enforcement official for their contributions to jewelry.
FinancialsSep 28, 2026
Instappraise, Jewelers Mutual Look to Simplify Jewelry InsuranceThrough a new system integration, customers can now receive instant personal jewelry insurance quotes at the time of appraisal.
WatchesSep 25, 2026
Smaller Rolex Watches Showing Strength on Secondary Market, Data ShowsFive of the 10 fastest-appreciating Rolex models on Bob’s Watches were Datejust 31 or Lady Datejust watches.
MajorsSep 25, 2026
Sherwood Family Buys Back Daniel’s Jewelers from Private EquityThe Sherwood family and AJS Creations CEO Tejas Shah purchased the jewelry chain back from Palladium Equity Partners.
Lab-GrownSep 25, 2026
Brilliant Earth Collabs with Elizabeth Taylor Estate on Jewelry Collection“The Elizabeth Taylor Collection” uses lab-grown diamonds and gemstones in contemporary designs inspired by the icon.
TrendsSep 25, 2026
A Peek at Taylor Swift’s Game-Day DiamondsThe artist wore Dana Rebecca Designs’ marquise diamond-set gold hoops at the Chiefs game last Sunday. Now they’re our Piece of the Week.
