Seven people were charged by the U.S. federal government for manipulating the stock price of China Liberal Edu, defrauding $214 million
The U.S. Department of Justice has filed criminal charges against seven individuals involved in a $214 million stock manipulation fraud case related to China Liberal Edu. The case employed a "pump and dump" scheme, where the individuals artificially inflated stock prices through false advertising and coordinated trading, followed by a large-scale sell-off for profit, resulting in significant losses for investors. The seven accused face charges of wire fraud and securities fraud and have not yet been arrested
According to the Zhitong Finance APP, recently, the U.S. Department of Justice officially filed criminal charges against seven individuals involved in a major financial fraud investigation. This case involves a stock scam technique known as "Pump-and-Dump." During the investigation, federal law enforcement agencies seized approximately $214 million in suspected illegal proceeds.
According to the indictment made public last Thursday by the U.S. District Court for the Northern District of Illinois, from November 2024 to February 2025, the individuals involved manipulated the stock price of China Liberal Edu (CLEU.US) through misleading promotions and coordinated stock trading. This company is registered in the Cayman Islands and primarily provides educational services in China. The individuals allegedly impersonated U.S. investment advisors on social media and communication platforms, falsely promising substantial returns on investments in the company's stock, attracting a large number of investors into the market and driving up the stock price. Once the stock price reached a certain peak, these individuals quickly sold off large amounts of their holdings, making millions of dollars in profits. Subsequently, the stock price plummeted, causing significant losses for many ordinary investors, some of whom nearly lost all their invested funds.
The seven defendants charged are: 50-year-old Malaysian Cedric Lim Xiang Jie, 36-year-old Taiwanese Ming-Shen Cheng, 57-year-old Malaysian Ko Sen Chai, 39-year-old Malaysian King Sung Wong, 37-year-old Malaysian Siong Wee Vun, 54-year-old Taiwanese Chien Lung Ma, and 56-year-old Malaysian Kok Wah Wong. They face charges of wire fraud and securities fraud and have not yet been arrested; the court has issued arrest warrants for them.
During the investigation, U.S. federal law enforcement agencies have seized approximately $214 million in involved funds, which are currently under the supervision of the U.S. government. The U.S. Attorney's Office in Chicago has filed a civil lawsuit seeking the permanent forfeiture of these funds to ultimately return them to the affected investors.
Morris Pasqual, acting U.S. Attorney for the Northern District of Illinois, and Douglas S. DePodesta, special agent of the FBI Chicago Field Office, jointly announced the indictment and the seizure of funds. The investigation of the case has also received significant assistance from the SEC Boston Regional Office and the SEC Office of Inspector General. Currently, the case is being handled by Assistant U.S. Attorney Jared Hasten. Under U.S. law, each count of securities fraud carries a maximum sentence of 25 years in prison, and each count of wire fraud carries a maximum sentence of 20 years in prison
