CollectionsApr 03, 2026
Taylor Swift’s ‘Elizabeth Taylor’ Video Puts Jewelry Front and CenterIconic pieces, like the Mike Todd Diamond Tiara, appear in the superstar’s new music video for her song inspired by the actress.
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
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.
The Latest
MajorsApr 03, 2026
Saks Global Says It Will Emerge From Bankruptcy This SummerThe luxury retailer, which went Chapter 11 in January, announced Thursday that it has secured $500 million in exit financing.
Events & AwardsApr 03, 2026
JCK Luxury, NouvelleBox Partner on New Designer BallroomThe NouvelleBox ballroom will feature independent jewelry designers, including Lene Vibe, Wyld Box Jewelry, and Kiaia Limited.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
CollectionsApr 03, 2026
Buddha Mama Brings Its ‘Moon’ Locket To DallasThe one-of-a-kind locket, our Piece of the Week, opens to reveal three hidden images to keep close to your heart.
Weekly QuizApr 02, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsApr 02, 2026
Pandora Opens New Canadian Distribution Center Amid Tariff ConcernsThe new facility was also designed to better serve its growing customer base in Canada.
TrendsApr 02, 2026
Michelle Yeoh Fronts New Mikimoto Campaign The campaign is a tribute to the year 1893, when Kokichi Mikimoto created the world’s first cultured pearl.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
GradingApr 02, 2026
GIA Debuts New Campus in TaiwanIt is the only GIA school to offer the GIA Graduate Gemologist program in Chinese.
MajorsApr 02, 2026
DCA Launches ‘Second Spark’ Workforce InitiativeThe initiative connects veterans and parents returning to the workforce with careers in jewelry retail.
MajorsApr 02, 2026
Hoover & Strong Names New National Sales RepresentativeThe wholesale manufacturer and precious metals refiner has appointed Michael Angelo as its new national sales representative.
MajorsApr 01, 2026
Foundrae Sues Pandora for Allegedly Copying Its Medallion DesignsFoundrae also accused the jewelry giant of copying its mood board style of marketing.
AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to AuctionA Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in MarchThe Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s BookThe retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant ApplicationsApplications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.
ColumnistsMar 31, 2026
Q1 Clues That Reveal Where Your Jewelry Store’s Sales Are Heading These customer behavior patterns say a lot about how successful your jewelry store is going to be this year, Emmanuel Raheb writes.
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ CollectionMejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in DallasThe Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.
EditorsMar 30, 2026
Tom Moses Looks Back on His Decades at GIA Moses, who will leave the lab in May after nearly 50 years, discusses his start in the business, gemstones that stand out, and what’s next.
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring CatalogThe new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from DiavikProduction has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.
MajorsMar 30, 2026
Tanishq Opens First New England LocationThe store opening marks the 10th United States location for the India-based jewelry retailer.
MajorsMar 27, 2026
Saks Global Has Changed Its Mind About Closing These 3 StoresTwo Saks Fifth Avenue locations, one in Florida and one in California, and one Neiman Marcus store are off the chopping block.
IndependentsMar 27, 2026
Jimmy West, Longtime LJG Executive Director, Dies at 72West, who started in the art department at the Leading Jewelers Guild in 1979, is remembered for his patience, kindness, and dedication.
