Seven individuals charged with manipulating China Liberal Education Holdings Ltd (CLEU.US) stock price to defraud $214 million in the United States.

Recently, in a major financial fraud investigation in the United States, the Department of Justice has formally charged 7 individuals with criminal offenses. The case involves stock fraud known as "Pump-and-Dump". During the investigation, federal law enforcement agencies seized approximately $214 million in illegal proceeds. According to the indictment released by the federal court in the Northern District of Illinois last Thursday, from November 2024 to February 2025, the individuals involved manipulated the stock price of China Liberal Education Holdings Ltd (CLEU.US) through misleading advertising and coordinated stock trading. The company is registered in the Cayman Islands and primarily provides educational services in China. The individuals allegedly impersonated American investment advisors on social media and communication platforms, falsely promising huge returns on investment in the company's stock to attract a large number of investors into the market, driving up the stock price. When the stock price reached a certain high point, these individuals quickly sold off large amounts of their stocks, making millions of dollars in profits. Subsequently, the stock price plummeted, causing significant losses to many ordinary investors, some of whom lost almost all of their invested capital. The 7 defendants facing charges are: Cedric Lim Xiang Jie, a 50-year-old Malaysian national, Ming-Shen Cheng, a 36-year-old Taiwanese national, Ko Sen Chai, a 57-year-old Malaysian national, King Sung Wong, a 39-year-old Malaysian national, Siong Wee Vun, a 37-year-old Malaysian national, Chien Lung Ma, a 54-year-old Taiwanese national, and Kok Wah Wong, a 56-year-old Malaysian national. They are charged with wire fraud and securities fraud, and have not been arrested yet, as the court has issued warrants for their arrest. During the investigation, US federal law enforcement agencies have seized approximately $214 million in illicit funds, which are currently under the supervision of the US government. The federal prosecutor's office in Chicago has filed a civil complaint seeking the permanent forfeiture of these funds in order to eventually return them to the defrauded investors. Assistant US Attorney Morris Pasqual and Special Agent Douglas S. DePodesta of the Chicago field office of the FBI jointly announced the charges and fund seizure. The investigation has also received significant assistance from the Boston regional office of the US Securities and Exchange Commission (SEC) and the SEC Inspector General's office. Currently, the litigation work for this case is being handled by Assistant US Attorney Jared Hasten. Under US law, each securities fraud charge can carry a maximum sentence of 25 years in prison, while each wire fraud charge can carry a maximum sentence of 20 years in prison.