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CHICAGO – The U.S. Attorney’s Office for the Northern District of Illinois has obtained a court order forfeiting approximately $214 million in proceeds from an alleged international “pump-and-dump” investment fraud scheme, with the funds to be returned to defrauded investors.
The forfeiture order, granted by U.S. District Judge Jorge L. Alonso, pertains to a scheme in which seven individuals allegedly manipulated the stock of China Liberal Education Holdings, Ltd., a company registered in the Cayman Islands that claimed to provide educational services in China. According to a federal indictment unsealed in March 2025, the defendants engaged in coordinated and deceptive stock promotion between November 2024 and February 2025, ultimately profiting by artificially inflating and then selling off shares of the company.
The U.S. Department of Justice alleges that the defendants—operating primarily from China, Malaysia, and Taiwan—posed as U.S.-based investment advisors across social media platforms and private messaging apps. They falsely promised significant investment returns, misleading retail investors and driving up the stock price. Once inflated, the defendants allegedly sold large volumes of stock, generating millions in profit. The stock price then plummeted, causing severe losses for unsuspecting investors, some of whom lost nearly all of their investment.
Federal law enforcement seized approximately $214 million linked to the fraudulent trades during the investigation. With Judge Alonso’s approval, the funds have been permanently forfeited to the U.S. government and will be used to compensate confirmed victims of the scheme.
Statements from Officials
“This forfeiture order represents a major step toward justice for the victims of a highly coordinated and deceitful fraud scheme,” said U.S. Attorney Andrew S. Boutros. “We are committed to recovering illicit profits and returning them to those who were harmed. This case sends a clear message: market manipulation will not be tolerated.”
Douglas S. DePodesta, Special Agent in Charge of the FBI’s Chicago Field Office, praised the recovery of funds: “Despite the complexity of the operation and the international scope of the fraud, this case highlights the FBI’s commitment to protecting American investors. We were able to intercept funds before they vanished into overseas accounts—an outcome that underscores the strength of our investigative partnerships.”
The investigation received key assistance from the Boston Regional Office of the U.S. Securities and Exchange Commission (SEC) and the SEC’s Office of Inspector General. The forfeiture proceedings were led by Assistant U.S. Attorney Jared Hasten.
Charges and Ongoing Proceedings
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)
- Kok Wah Wong (Malaysia)
Warrants have been issued for their arrests. None are currently in U.S. custody. As in all criminal matters, an indictment is an allegation, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Victim Outreach
Individuals who believe they may have been affected by the scheme are encouraged to contact the FBI by completing the online form at tips.fbi.gov or by calling 1-800-CALL-FBI (1-800-225-5324).
