Malaysia Pump And Dump Investment

Five Malaysians have been charged in the United States for their alleged involvement in a US$214 million (RM950 million) “pump-and-dump” investment fraud scheme.

The accused Malaysians allegedly manipulated stock prices for profit. The misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits.

A “pump-and-dump” scheme involves artificially inflating a stock’s price through misleading promotions before selling off shares at a profit, leaving other investors with losses. The fraudulent scheme allegedly involved individuals in China posing as US-based investment advisors to deceive investors into buying shares of China Liberal Education Holdings, Ltd.

The five Malaysians, along with their two Taiwanese co-conspirators, are currently not in custody, and arrest warrants have been issued for them. US authorities have seized approximately US$214 million in alleged proceeds from the scheme and are seeking to have the funds forfeited.

If convicted, the accused could face up to 25 years in prison for each securities fraud charge and up to 20 years for each wire fraud charge.