Wuo Subject of Ethics Investigation, Named as Defendant in Class Action Lawsuit

John Wuo listens to critics of his involvement in the Gemcoin saga – Photo by Terry Miller

By Joe Taglieri

Arcadia Council Member John Wuo is under investigation by the state overseer of political ethics for his role in the Gemcoin controversy, a spokesman from the Fair Political Practices Commission said Tuesday.

Wuo was also named as a defendant in a class action lawsuit that also centers around the allegedly fraudulent cryptocurrency marketed by Arcadia-Based USFIA Inc. and company head Steve Chen.

Documents show Arcadia resident David Arvizu, a vocal critic of Wuo who since Arcadia Weekly reported on the councilman’s involvement in selling Gemcoin to a wide range of investors both locally as well as internationally, filed the FPPC complaint Sept. 28. Arvizu alleged Wuo received financial compensation from Chen and USFIA and failed to reveal the income on financial disclosure documents.

The class action lawsuit filed on behalf of an unnamed plaintiff by San Gabriel-based attorney Long Liu also centers on allegedly fraudulent Gemcoin, which recently became the subject of a lawsuit filed by the federal Securities and Exchange Commission against Chen and USFIA in addition to an order from the state Department of Business Oversight that USFIA halt the digital currency investment scheme.

In addition to fraud, the lawsuit claims Chen, Wuo and a number of other entities affiliated with Chen are guilty of 11 other illegalities including breach of contract, breach of fiduciary duties, negligent misrepresentation and unfair competition.

Wuo and Arcadia City Manager Dominic Lazzaretto could not be reached for comment.

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