$214 Million Seized in China Liberal Education 'Pump and Dump'; Seven Charged and Still at Large

Case from 2025–2026 (U.S. Attorney's Office latest release: May 28, 2025; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Seven people from Malaysia and Taiwan were indicted in Chicago on March 20, 2025, on wire fraud and securities fraud charges in an alleged "pump-and-dump" scheme in shares of China Liberal Education Holdings Ltd. (CLEU), and federal agents seized about $214 million in alleged proceeds, the U.S. Attorney's Office for the Northern District of Illinois announced [1]. A federal judge ordered the money permanently forfeited in May 2025 so it can be returned to victims [2].

Important: The seven defendants are charged only and presumed innocent. None was in custody as of the government's latest announcement, and warrants have been issued for their arrests [3].

How the alleged scheme worked

According to the indictment as summarized by prosecutors [1]:

1. The stock: CLEU was a Cayman Islands company that claimed to provide educational services in China.
2. Fake advisers: From November 2024 to February 2025, people in China allegedly posed as U.S.-based investment advisers on social media and messaging platforms and promised big returns from buying CLEU.
3. The pump: The promotion and coordinated trading allegedly drove the share price up artificially.
4. The dump: The defendants then allegedly sold thousands of shares for millions in profits.
5. The crash: The stock price fell sharply, and some investors lost almost everything. CLEU was later delisted from Nasdaq [3].

The people charged

Charged with wire fraud and securities fraud [1]:

• 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

Each securities fraud count carries up to 25 years in prison and each wire fraud count up to 20 years, according to the release.

The money and victim compensation

• Forfeiture: On May 27, 2025, U.S. District Judge Jorge L. Alonso granted the government's motion to permanently forfeit about $214 million [2].
• A challenge, later withdrawn: In June 2025, lawyers for Ming-Shen Cheng moved to vacate the default forfeiture of about $37.9 million seized from an account in his name. Court records show the judge denied that motion without prejudice in November 2025, and the claim was voluntarily dismissed in December 2025 [4].
• Remission fund: In February 2026, the Justice Department opened the CLEU Remission Fund, run by Kroll Settlement Administration, to compensate eligible victims [3]. The fund's website says the petition deadline was July 31, 2026, and submitted petitions are being reviewed [5].

Beware of fake "recovery" offers: The Justice Department says neither it nor the administrator will ask for any payment to take part. Official contact is through CLEUremissionfund.com or Kroll at 1-833-754-8247 [3].

Red flags

• An "adviser" you met on social media or WhatsApp who steers your group into one little-known stock.
• Promises of quick, large gains on a small-cap or recently listed company.
• Pressure to buy at a set time along with others in a chat group.
• Anyone charging a fee to recover your losses.

What to do if you're targeted

1. Never buy a stock because a stranger online tells you to. Check the adviser at BrokerCheck.
2. Report stock promotion scams to the SEC at sec.gov/tcr and the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant / matter	Court	Status as of Oct. 16, 2026	Source
Lim Xiang Jie Cedric; Ming-Shen Cheng; Ko Sen Chai; King Sung Wong; Siong Wee Vun; Chien Lung Ma; Kok Wah Wong	N.D. Ill.	Indicted March 20, 2025 (wire fraud, securities fraud); not in custody, arrest warrants issued (as of Feb. 2026); no later outcome found in public sources as of Oct. 16, 2026	[1], [3]
~$214 million civil forfeiture	N.D. Ill. (Judge Alonso)	Forfeiture ordered May 27, 2025; Cheng's challenge to ~$37.9M voluntarily dismissed Dec. 2025; remission process under way	[2], [4], [5]

An indictment is an accusation, not evidence of guilt.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Federal Law Enforcement in Chicago Seizes $214 Million in Alleged 'Pump and Dump' Investment Fraud Investigation; Seven Defendants Indicted," March 21, 2025. https://www.justice.gov/usao-ndil/pr/federal-law-enforcement-chicago-seizes-214-million-alleged-pump-and-dump-investment
2. U.S. Attorney's Office, Northern District of Illinois, "U.S. Attorney's Office in Chicago Obtains Forfeiture of $214 Million in Proceeds From Alleged 'Pump and Dump' Investment Fraud Scheme," May 28, 2025. https://www.justice.gov/usao-ndil/pr/us-attorneys-office-chicago-obtains-forfeiture-214-million-proceeds-alleged-pump-and
3. U.S. Department of Justice, Office of Public Affairs, "U.S. Department of Justice Announces Compensation Process for Victims of Chinese Liberal Education Holdings Ltd. (CLEU) Investment Fraud Scheme," Feb. 3, 2026. https://www.justice.gov/opa/pr/us-department-justice-announces-compensation-process-victims-chinese-liberal-education
4. Docket entries 26, 41 and 44, United States v. Funds in the amount of $37,905,571.53 (N.D. Ill. forfeiture action), via CourtListener RECAP. https://www.courtlistener.com/?q=%22Ming-Shen+Cheng%22&type=r
5. CLEU Remission Fund (Kroll Settlement Administration). https://www.cleuremissionfund.com/

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, acquittal, or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.