Seven individuals have been indicted on criminal charges in connection with a federal investigation into an alleged "pump-and-dump" investment fraud scheme. This operation, which led to the seizure of approximately $214 million by authorities, targeted China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands claiming to offer educational services in China.
According to the indictment filed in U.S. District Court in Chicago, from November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares. Individuals in China allegedly posed as U.S.-based investment advisors on social media and messaging platforms, falsely promising significant returns from investments in the company. The stock price was artificially inflated through these actions, allowing the defendants to sell thousands of shares for substantial profits before the price plummeted, causing significant losses for other investors.
The individuals charged include Lim Xiang Jie Cedric, 50, of Malaysia; Ming-Shen Cheng, 36, of Taiwan; Ko Sen Chai, 57, of Malaysia; King Sung Wong, 39, of Malaysia; Siong Wee Vun, 37, of Malaysia; Chien Lung Ma, 54, of Taiwan; and Kok Wah Wong, 56, of Malaysia. Arrest warrants have been issued as they are not currently in custody.
Federal law enforcement has seized around $214 million believed to be proceeds from this fraud scheme. These funds are under U.S. custody while a civil complaint seeks their permanent forfeiture to allow restitution to victimized investors.
The announcement was made by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Douglas S. DePodesta from the FBI's Chicago Field Office. Assistance came from the Boston Regional Office of the U.S. Securities and Exchange Commission and its Office of Inspector General. Assistant U.S. Attorney Jared Hasten is representing the government.
Each securities fraud count carries a maximum penalty of up to 25 years in federal prison while wire fraud counts carry up to 20 years each. It is emphasized that an indictment contains only charges and is not proof of guilt; defendants are presumed innocent until proven guilty beyond a reasonable doubt at trial.
Those who believe they may have been victims are encouraged to contact the FBI via an online form or call their hotline.
