Listen to the article
California State Treasurer Under Scrutiny for Ties to Chinese School in Diploma Fraud Investigation
California State Treasurer Fiona Ma faces mounting criticism over her connections to a China-based boarding school implicated in a diploma fraud investigation, after the school’s founder contributed significantly to her political campaigns.
The controversy centers around Pegasus California School in Qingdao, China, which was the subject of a probe completed in February by Riverside County education officials. Investigators examined the school’s relationship with Val Verde Unified School District, which allegedly issued illegal diplomas to Chinese students studying overseas.
The audit revealed “a pattern of favors, official acts, promises, and payments” that ultimately led to the California Department of Education’s approval of a pilot program allowing wealthy Chinese students to obtain U.S. high school diplomas while studying in China.
Documentation from the school’s website shows Ma visiting Pegasus in 2023, where she reportedly promised employment opportunities to students. “If they want to intern in California, they can come to me, I will provide some internship and employment opportunities,” Ma was quoted as saying during her visit.
The school prominently featured Ma’s visit, claiming it demonstrated “the California government’s recognition and attention to Pegasus” and boasting that Ma “chose Pegasus as the only school to visit in China.”
Campaign finance records show Steven Ma, the founder of Pegasus (no relation to Fiona Ma), directly contributed over $13,200 to her campaigns for State Treasurer and Lieutenant Governor since 2021. Additionally, his college-admissions consulting firm, ThinkTank Learning Inc., has contributed $23,800 to Ma’s campaigns since 2010.
The relationship raises questions about potential conflicts of interest as Ma currently serves as State Treasurer while campaigning for lieutenant governor. Multiple requests for comment from Ma’s office regarding her visit to the China-based school went unanswered.
Pegasus California School has been under scrutiny since at least 2021, when Business Insider published an investigation highlighting its problematic relationship with the Val Verde district. The report revealed that the China-based school was charging students up to $34,000 annually while functioning essentially as a private boarding school, despite its connection to a California public school district.
The school’s own website describes itself as an “independent” international school using a “fee payment and registration” framework similar to private schools in the United States.
A 2018 Memorandum of Understanding between Pegasus and Val Verde showed that in exchange for providing diplomas and teachers, ten students from the Val Verde district would be given the opportunity to visit China and attend Pegasus for 10 days at a cost of $300 per student. The audit noted that while there was no clear direct repayment from Pegasus to Val Verde itself, officials and the district benefited from travel opportunities, consulting arrangements, scholarships, and “great publicity.”
Pegasus allegedly marketed itself to Chinese students and parents with guarantees of admission to top 100 U.S. universities, offering complete tuition reimbursement if this promise wasn’t fulfilled. A 2019 Memorandum included in the audit showed that University of California – Riverside had committed to providing scholarships to Pegasus students who met certain academic requirements.
Following the completion of the audit in February, which was publicly announced in March by Riverside County Superintendent of Schools Dr. Edwin Gomez, the California Department of Education issued a cease-and-desist order. The department demanded Pegasus remove statements from its website claiming it was founded with the department’s “blessing and support.”
“The California Department of Education is not connected to, does not approve and does not endorse Pegasus California School,” the March cease-and-desist letter stated, citing California Business and Professions Code Section 17533.6, which prohibits non-governmental entities from implying government approval or endorsement.
As the investigation continues to unfold, questions remain about the extent of Ma’s involvement and knowledge of the school’s practices as she pursues higher office in California.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
6 Comments
I appreciate investigative journalists shining a light on these kinds of concerning connections. Robust oversight and transparency around school accreditation and political fundraising are crucial to maintaining public trust.
While the details are still emerging, this case highlights the need for stronger regulations and enforcement to prevent abuse in the education sector, especially when it involves international partnerships and political influence.
I’m curious to learn more about the specifics of this diploma fraud investigation. What were the exact nature of the favors, official acts, and payments uncovered? Were there any direct financial ties between the candidate and the Chinese school?
Good questions. The article mentions some details about the investigation findings, but more information is needed to fully understand the extent of the issues and any potential conflicts of interest.
This is concerning. State officials should be held accountable if they’re linked to questionable academic practices or accepting political donations from shady organizations. More transparency is needed to ensure the integrity of our education system.
This raises serious doubts about the candidate’s ethical standards and commitment to educational quality. Voters deserve leaders who uphold the highest principles of public service, not ones entangled with shadowy for-profit schools.