In a decisive move by the U.S. Attorney’s Office, approximately $214 million has been recovered and forfeited from an elaborate “pump-and-dump” scheme that targeted U.S. investors with promises of outsized returns on investments in China Liberal Education Holdings, Ltd. According to the U.S. Attorney's Office, Northern District of Illinois, the scheme was operational between November 2024 and February 2025 and led to the indictment of seven individuals on charges of wire fraud and securities fraud.
As per the detailed indictment, these individuals, posing as investment advisors based in the U.S., engaged in a coordinated strategy by misleadingly promoting the company's stock on social media and messaging platforms; they pumped up the stock price through coordinated trading only to then dump their shares for a hefty profit while the stock price took a nosedive, leaving other investors with significant losses some of which who lost almost all of their investments. U.S. District Judge Jorge L. Alonso has approved the forfeiture motion, allowing these funds to potentially be returned to the aggrieved investors, the U.S. Attorney's Office, Northern District of Illinois reported.
Andrew S. Boutros, United States Attorney for the Northern District of Illinois, underscored the commitment of his office to rectify the situation for victims, stating, "Our attorneys and staff in this case placed a high priority on recovering funds for victims." Boutros also issued a stern warning about the serious consequences awaiting those who manipulate financial markets to defraud investors. Meanwhile, Douglas S. DePodesta, the Special Agent-in-Charge of the Chicago Field Office of the FBI, lauded the bureau's investigative efforts that enabled this substantial financial recovery, emphasizing the harm these schemes cause to unsuspecting Americans and reaffirming the FBI's dedication to bringing fraudulent actors to justice.
While the defendants – LIM XIANG JIE CEDRIC, MING-SHEN CHENG, KO SEN CHAI, KING SUNG WONG, SIONG WEE VUN, CHIEN LUNG MA, and KOK WAH WONG – hail from various locations in Malaysia and Taiwan, their whereabouts remain unknown as they are not currently in custody, though arrest warrants have been issued. The U.S. Attorney's Office has encouraged anyone who believes they have fallen victim to this scheme to reach out to the FBI through an online form or by calling 1-800-CALL-FBI (1-800-225-5324), officials urge.
