Feds in Chicago charge 7 in ‘pump and dump’ social media scheme

CHICAGO — An investigation into an alleged “pump-and-dump” investment fraud scheme has resulted in the indictment of seven people and the seizure of more than $214 million by federal law enforcement in Chicago.

The alleged “pump-and-dump” scheme, which unfolded between November 2024 and February 2025, involved a group of individuals in China who posed as U.S.-based investment advisors on social media and messaging platforms and used their positions to falsely promise significant returns from investments in a company in China, according to an indictment returned Thursday in U.S. District Court in Chicago.

The company that was allegedly being promoted, China Liberal Education Holdings, Ltd., which was incorporated in the Cayman Islands, purportedly provided educational services in China.

When the misleading promotion and coordinated trading eventually caused the stock price to artificially rise, prosecutors said the defendants allegedly sold thousands of shares and made millions, ultimately causing the stock price to fall significantly at the expense of the misled investors.

Amid an investigation, federal law enforcement seized approximately $214 million in alleged proceeds from the scheme.

The funds are currently in U.S. custody and, in an effort to allow the government to return the money to victims, the U.S. Attorney’s Office in Chicago filed a civil complaint Thursday seeking to have the money permanently forfeited to the U.S.

Prosecutors say the following seven individuals have each been charged with wire fraud and securities fraud in connection with the alleged scheme: 50-year-old Lim Xiang Jie Cedric, of Malaysia; 36-year-old Ming-Shen Cheng of Taiwan; 57-year-old Ko Sen Chai of Malaysia; 39-year-old King Sung Wong of Malaysia; 37-year-old Siong Wee Vun of Malaysia; 54-year-old Chien Lung Ma of Taiwan; 56-year-old Kok Wah Wong of Malaysia.

None of the individuals named in the indictment have been taken into custody and warrants have been issued for their arrests. 

Each count of securities fraud is punishable by up to 25 years in federal prison while each count of wire fraud is punishable by up to 20 years.

The FBI encourages anyone who may have fallen victim or knows someone who may have fallen victim, to notify agents by completing an online form or calling 1-800-CALL-FBI.