John Wuo, former Arcadia City Council member, faces a $2,000 fine from California's Fair Political Practices Commission (FPPC) for failing to disclose income and a business position related to the now-defunct USFIA scheme. The Securities and Exchange Commission (SEC) previously identified USFIA as a $32 million Ponzi operation last September.
Wuo’s connection to USFIA came to light shortly after ScamTelegraph published its review of the scheme. Photographs placed Wuo alongside USFIA management, a detail that fueled resident concerns given his elected position in Arcadia. He publicly denied any financial ties to USFIA or its associated companies, including Gemcoin, in statements to local media.
Despite these denials, Wuo resigned from the Arcadia City Council on October 7th, 2015. The resignation followed calls for his removal and occurred one day before the FPPC confirmed its investigation into his conduct. This inquiry stemmed from an official complaint filed by Arcadia resident David Arvizu, who had publicly criticized Wuo's association with USFIA at council meetings.
The FPPC’s investigation centered on potential violations of the Political Reform Act, which prohibits public officials from making governmental decisions that could affect their financial interests and mandates disclosure of certain assets and income. According to the commission's agenda for a November 17th meeting, Wuo failed to report income received from US Fine Arts Investments and a business role with 24 HD Surveillance on his 2014 and 2015 Annual Statements of Economic Interests. These omissions constitute two counts of violating specific government code sections.
While the $2,000 penalty is noted, the more significant aspect of the FPPC's findings is the confirmation of Wuo's undisclosed involvement with USFIA. The exact profit Wuo gained from the scheme remains unspecified in the FPPC agenda, though it is expected to surface in ongoing SEC or court-appointed receiver filings. The FPPC meeting on November 17th was open to the public, offering a potential venue for further details regarding Wuo's financial gains.