Seven individuals face criminal charges following a federal investigation into an alleged "pump-and-dump" investment fraud scheme, leading to the seizure of approximately $214 million by authorities. The defendants allegedly engaged in misleading promotion and coordinated trading of shares in China Liberal Education Holdings, Ltd., a company registered in the Cayman Islands, purportedly offering educational services in China.
The indictment, returned Thursday in U.S. District Court in Chicago, claims that from November 2024 to February 2025, individuals based in China posed as U.S.-based investment advisors on social media and messaging platforms. They allegedly promised significant returns on investments in the company. This activity reportedly caused the stock price to rise artificially before the defendants sold their shares for substantial profits. The stock price later fell significantly, causing some investors to lose nearly all their investments.
Charged with wire fraud and securities fraud are Lim Xiang Jie Cedric, 50, Ming-Shen Cheng, 36, Ko Sen Chai, 57, King Sung Wong, 39, Siong Wee Vun, 37, Chien Lung Ma, 54, and Kok Wah Wong, 56. All are currently not in custody with warrants issued for their arrests.
Federal law enforcement seized around $214 million believed to be proceeds from the fraudulent scheme. These funds are under U.S. custody while a civil complaint has been filed by the U.S. Attorney’s Office in Chicago seeking permanent forfeiture of the money to return it to victim investors.
The announcement was made by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Douglas S. DePodesta of the FBI's Chicago Field Office. Assistance came 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.
Securities fraud carries a maximum penalty of up to 25 years per count in federal prison; wire fraud can result in up to 20 years per count. It is important to note that an indictment only contains charges without evidence of guilt; defendants remain presumed innocent until proven guilty beyond a reasonable doubt at trial.
Those who suspect they may have been victims of this scheme are encouraged to contact the FBI through an online form or by calling their hotline.