The Department of Justice launched a compensation process on Tuesday for victims of an alleged investment fraud scheme involving Chinese Liberal Education Holdings Ltd (CLEU).
Federal authorities say the “pump-and-dump” operation cost investors millions. The announcement marks a significant development in a case that exposed how fraudsters allegedly weaponized social media and stock manipulation to fleece unsuspecting Americans.
Seven individuals face charges for allegedly orchestrating the scheme between November 2024 and February 2025. Prosecutors say the defendants posed as U.S.-based investment advisors on social media platforms.
They promised significant returns from CLEU stock, a NASDAQ-listed company claiming to provide educational services in China. The coordinated promotion artificially inflated the stock price before the defendants sold their shares, resulting in millions in profits.
“This was a coordinated act of both social and market manipulation,” said Assistant Attorney General A. Tysen Duva. “The defendants allegedly made millions by setting a trap for unsuspecting investors, many of whom lost their life savings.”
Federal authorities seized over $200 million in assets traceable to the scheme in May 2025. These funds now form the basis of the CLEU remission fund.
CLEU has since been delisted from NASDAQ. The stock’s dramatic collapse left some investors with near-total losses.
“Despite the overwhelming manipulation as alleged in this case, this serves as one of the premier FBI investigations in which the federal government was able to successfully recover victims’ hard-earned money before it disappeared into overseas bank accounts,” said Special Agent in Charge Douglas S. DePodesta.
The defendants remain at large with outstanding arrest warrants. None is currently in custody.
Kroll Settlement Administration will handle the victim compensation process. Victims can file claims through the official website at CLEUremissionfund.com or by calling 1-833-754-8247.
The Justice Department emphasized that participation requires no payment. Officials warned victims to be wary of impersonators claiming to represent the government or the remission administrator.
Since 2000, the department’s Asset Forfeiture Program has returned more than $12 billion to crime victims. The CLEU case represents one of the larger recoveries in recent pump-and-dump prosecutions.
U.S. Attorney Andrew S. Boutros called the $200 million forfeiture a warning to market manipulators.
“Federal law enforcement will aggressively pursue fraudulent profits from those who seek to prey upon investors by manipulating the U.S. stock market,” he said.
The investigation involved collaboration between the FBI, Securities and Exchange Commission, and the U.S. Attorney’s Office for the Northern District of Illinois.
