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SEVEN individuals from Malaysia and Taiwan have been indicted on criminal charges in connection with an investigation into an alleged "pump-and-dump" investment fraud scheme that led to the US government seizing approximately $214 million.
According to reports, from November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that purported to provide educational services in China.
According to an indictment in the United States District Court in Chicago, the scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as US-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company.
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.
The accused Malaysians are Lim Xiang Jie, 50; Ko Sen Chai, 57; King Sung Wong, 39; Siong Wee Vun, 37; and Kok Wah Wong, 56; who, along with the two Taiwanese nationals, Chien Lung Ma, 54; and Ming-Shen Cheng, 36.
The defendants are not currently in custody, and warrants have been issued for their arrests.
If convicted, each defendant faces a maximum of 25 years in federal prison for securities fraud and up to 20 years for wire fraud. – March 22, 2025
