The U.S. Attorney’s Office in Chicago has secured the forfeiture of approximately $214 million from an alleged “pump-and-dump” investment fraud scheme. This operation previously led to charges against seven individuals.
According to a March indictment in U.S. District Court, from November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a Cayman Islands-incorporated company claiming to provide educational services in China. The scheme involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms, falsely promising significant returns on investments. The misleading activities caused the stock price to rise artificially, allowing the defendants to sell thousands of shares for millions in profits before the stock price fell significantly, causing losses for other investors.
Federal law enforcement seized about $214 million in alleged proceeds during their investigation. These funds are now held by the U.S., following an order by U.S. District Judge Jorge L. Alonso granting permanent forfeiture to allow for potential restitution to victim investors.
Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the FBI’s Chicago Field Office, announced the forfeiture order with support from other agencies including the Boston Regional Office of the SEC and its Inspector General’s Office.
U.S. Attorney Boutros stated that “as alleged in the indictment and forfeiture complaint, the defendants defrauded U.S. investors through deceitful and coordinated trading activities.” He emphasized that recovering funds for victims was a high priority and warned that such actions would be pursued aggressively by federal law enforcement.
FBI SAC DePodesta remarked on this case as one where “the federal government was able to successfully recover victims’ hard-earned money before it disappeared into overseas bank accounts.” He noted that this elaborate fraud caused extensive harm but assured continued efforts towards justice against financial system exploitation.
Seven individuals have been charged with wire fraud and securities fraud: Lim Xiang Jie Cedric (Malaysia), Ming-Shen Cheng (Taiwan), Ko Sen Chai (Malaysia), King Sung Wong (Malaysia), Siong Wee Vun (Malaysia), Chien Lung Ma (Taiwan), and Kok Wah Wong (Malaysia). They are not currently in custody; warrants have been issued for their arrests.
The public is reminded that an indictment is not evidence of guilt; defendants are presumed innocent until proven guilty beyond a reasonable doubt at trial.
Victims or those who believe they may have been affected by this scheme are encouraged to contact the FBI via an online form or call 1-800-CALL-FBI (1-800-225-5324).
