The U.S. Attorney’s Office in Chicago has secured the forfeiture of approximately $214 million linked to an alleged "pump-and-dump" investment fraud scheme. This development follows charges against seven individuals who are accused of misleadingly promoting and coordinating the trading of shares in China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands.
Between November 2024 and February 2025, the defendants allegedly engaged in fraudulent activities by posing as U.S.-based investment advisors on social media platforms. They falsely promised significant returns from investments in the company, causing the stock price to artificially rise. The defendants then sold their shares at inflated prices, making substantial profits before the stock value plummeted, leading to considerable losses for other investors.
Federal law enforcement seized around $214 million during their investigation into this scheme. On Tuesday, U.S. District Judge Jorge L. Alonso approved a motion allowing these funds to be permanently forfeited to the United States, enabling the government to return money to victimized investors.
The announcement was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, alongside Douglas S. DePodesta, Special Agent-in-Charge of the FBI's Chicago Field Office. They acknowledged support from both the Boston Regional Office of the U.S. Securities and Exchange Commission and its Office of Inspector General. Assistant U.S. Attorney Jared Hasten represents the government.
“As alleged in the indictment and forfeiture complaint, the defendants defrauded U.S. investors through deceitful and coordinated trading activities," said U.S. Attorney Boutros. “Our attorneys and staff in this case placed a high priority on recovering funds for victims."
“Despite the overwhelming manipulation as alleged in this case," said FBI SAC DePodesta, “this serves as one of the premier FBI investigations in which the federal government was able to successfully recover victims’ hard-earned money before it disappeared into overseas bank accounts.”
Charged with wire fraud and securities fraud are LIM XIANG JIE CEDRIC from Malaysia; MING-SHEN CHENG from Taiwan; KO SEN CHAI from Malaysia; KING SUNG WONG from Malaysia; SIONG WEE VUN from Malaysia; CHIEN LUNG MA from Taiwan; and KOK WAH WONG from Malaysia. Arrest warrants have been issued since they are not currently in custody.
The public is reminded that these charges are allegations only and not evidence of guilt—each defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
Individuals who suspect they may have been affected by this scheme are encouraged to contact authorities via an online form or by calling 1-800-CALL-FBI (1-800-225-5324).
