AuctionsMay 15, 2026
American Collector Ponies Up Almost $17K for John Wayne’s RingThe Western star’s 14-karat gold signet ring sold for six times its low estimate following a bidding war at U.K. auction house Elmwood’s.
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
Events & AwardsMay 15, 2026
JA, MJSA To Sponsor Roundtable at TJSThe discussion, "Rebuilding the Jewelry Workforce," will take place on Saturday, May 16, in Troy, Michigan.
SourcingMay 15, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
AuctionsMay 14, 2026
White Diamonds Lead Sotheby’s Auction, Blue Diamond Does Not SellA matching pair of 18.38-carat, D-color diamonds from Botswana’s Jwaneng mine sold for $3.3 million, the top lot of the jewelry auction.
Weekly QuizMay 14, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinMay 14, 2026
A Diamond Is Forever Continues Desert Diamonds – Bridal ReinvigoratedSponsored by A Diamond Is Forever
SourcingMay 14, 2026
State of Colored Stones: The Spirit of Young American Gemstone CuttersThe next generation of lapidarists are entrepreneurial, engaged online, and see the craft as a means for artistic expression.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
AuctionsMay 14, 2026
‘Ocean Dream’ Makes Waves at Christie’s, Fetching $17MIt was the second auction appearance for the fancy vivid blue-green diamond, which sold for $7.8 million at Christie’s Geneva 12 years ago.
IndependentsMay 13, 2026
New Orleans Jeweler Closing Canal Place StoreJack Sutton Fine Jewelry is closing its store inside the downtown shopping center after 40 years in business.
SourcingMay 13, 2026
Smithsonian Acquires ‘Winston Red’ Diamond PaintingReena Ahluwalia’s painting of the rare red diamond is the first contemporary painting to join the National Gem Collection.
TrendsMay 13, 2026
State of Design: Only the Innovative Will SurviveThe price of gold has risen, affecting the number of pieces designers make, the materials they use, and how they position themselves.
ColumnistsMay 12, 2026
It’s Official: We’re Getting ‘Brain Rot’ From Watching Short-Form Videos Peter Smith gives tips on leading meetings, developing marketing, and making trade show appointments in the age of short attention spans.
CollectionsMay 12, 2026
Jessica McCormack Debuts Antique Coin-Inspired Medallions for SummerThe 11-piece “Medallions” capsule collection features five motifs: a crying eye, a heart on fire, a spiral, a flower, and a swallow.
IndependentsMay 12, 2026
State of Retail: 6 Things Retailers Should Know About Consumers TodayFrom Gen Z’s view of luxury to “doom spending,” these are the six consumer trends to note this year.
Events & AwardsMay 12, 2026
The Tiffany & Co. x CFDA Jewelry Designer Award Is BackThe partners have announced the second cycle of the program, which has expanded to include a $25,000 student scholarship.
IndependentsMay 11, 2026
Kansas Jeweler Closing After 70 YearsThe owners of Staats Jewelers are heading into retirement.
TrendsMay 11, 2026
Former Macy’s CEO Joins Signet Jewelers BoardJeffrey Gennette, who retired in 2024 after 41 years with Macy’s, is the newest member of the jewelry retailer’s board of directors.
TrendsMay 11, 2026
Amanda’s Style File: Lucky May May babies are lucky to have emeralds, a gemstone admired for centuries, as their birthstone, writes Amanda Gizzi.
TechnologyMay 11, 2026
Clientbook’s New Tool Helps Jewelers Plan In-Store EventsThe new module allows retailers to plan, promote, and measure the success of events from a single dashboard.
Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
SourcingMay 08, 2026
Ronnie VanderLinden Takes Over as WDC President The diamantaire and industry leader succeeds Feriel Zerouki and said he will focus on being a “champion” for natural diamonds.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
FinancialsMay 07, 2026
Brilliant Earth Appeals to Higher-Income Shoppers in Q1The jewelry retailer noted resilience among its higher-end customers while demand softened for its lower-priced offerings.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
