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7 indicted in Chicago in $214M 'pump-and-dump' investment fraud scheme

By FOX 32 Digital Staff
Published  March 21, 2025 2:20pm CDT
Crime and Public Safety
FOX 32 Chicago

The Brief

    • Seven individuals have been indicted for allegedly running a "pump-and-dump" stock scheme that defrauded investors and led to the government seizing approximately $214 million.
    • The defendants are accused of falsely promoting China Liberal Education Holdings, Ltd. on social media to artificially inflate its stock price before selling their shares for millions in profit.
    • Federal authorities have filed a civil complaint to permanently forfeit the seized funds, with the intent of returning them to affected investors.

CHICAGO - Seven individuals have been indicted on criminal charges in connection with a federal investigation into an alleged "pump-and-dump" investment fraud scheme that led to the government seizing approximately $214 million.

What we know:

According to an indictment filed Thursday in U.S. District Court in Chicago, from November 2024 to February 2025, the defendants manipulated the stock of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that claimed to provide educational services in China. 

The scheme allegedly involved individuals in China posing as U.S.-based investment advisors on social media and falsely promising significant returns.

Their misleading promotions and coordinated trading inflated the stock price, after which the defendants sold large amounts of shares for millions in profits. Meanwhile, unsuspecting investors saw their investments plummet in value, with some losing nearly everything.

During the investigation, federal authorities seized approximately $214 million in proceeds from the scheme. The funds remain in U.S. custody, and prosecutors have filed a civil complaint to permanently forfeit the money, with the intent of returning it to affected investors.

Charges:

The individuals charged with wire fraud and securities fraud are:

  • Lim Xiang Jie Cedric, 50, Malaysia
  • Ming-Shen Cheng, 36, Taiwan
  • Ko Sen Chai, 57, Malaysia
  • King Sung Wong, 39, Malaysia
  • Siong Wee Vun, 37, Malaysia
  • Chien Lung Ma, 54, Taiwan
  • Kok Wah Wong, 56, Malaysia

The defendants are not currently in custody, and warrants have been issued for their arrests.

What's next:

If convicted, each defendant faces a maximum of 25 years in federal prison for securities fraud and up to 20 years for wire fraud. 

Authorities are urging potential victims to come forward. If you believe you were affected by this scheme, you can contact the FBI by filling out an online form or calling 1-800-CALL-FBI (1-800-225-5324).

The Source: U.S. Attorney's Office, Northern District of Illinois

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