PETALING JAYA: Seven individuals from Malaysia and Taiwan have been charged in connection with a large-scale "pump and dump" investment fraud scheme, resulting in US authorities seizing over US$214mil in illicit gains.
According to CBS News, Federal prosecutors in Chicago announced that the following individuals have been charged with wire fraud and securities fraud: Lim Xiang Jie Cedric, 50, from Malaysia; Ming-Shen Cheng, 36, from Taiwan; Ko Sen Chai, 57, from Malaysia; King Sung Wong, 39, from Malaysia; Siong Wee Vun, 37, from Malaysia; Chien Lung Ma, 54, from Taiwan; and Kok Wah Wong, 56, from Malaysia.
According to the indictment, the defendants orchestrated a fraudulent investment scheme, offering shares in a Cayman Islands-based company named China Liberal Education Holdings, Ltd.
It is understood that the company was falsely marketed as providing educational services in China.
The defendants, posing as US-based investment advisors on social media and messaging platforms, misled investors by promising substantial returns from investments in the company.
Once the stock price of the company rose, they sold thousands of shares, reaping millions of dollars in profits before the stock value ultimately collapsed, resulting in massive losses for their clients.
Federal investigators have seized US$214mil in profits generated by the scam.
They have also filed a request with the court to permanently forfeit these funds to the US government in an effort to compensate the defrauded investors.
If found guilty, all seven face a maximum 25-year jail sentence, while the wire fraud charges could result in up to a 20-year imprisonment.
