California Treasurer Fiona Ma Implicated in Fraud Investigation Linked to Chinese School CEO

California’s state treasurer, Fiona Ma, has come under scrutiny after accepting substantial campaign contributions from a Chinese boarding school founder embroiled in a significant fraud investigation. During a covert visit in 2023, it is alleged that Ma offered to arrange employment and internships for the offspring of Chinese elites.

In her bid for lieutenant governor, Fiona Ma received over $30,000 from Steven Ma. He is the founder of a prestigious $34,000-per-year boarding school based in Qingdao, now under investigation for allegedly producing fake California diplomas for the children of influential Chinese families.

A comprehensive 1,000-page audit by Riverside County highlights a troubling pattern of favors, official actions, promises, and payments. This pertains to a government-sanctioned pilot initiative between Pegasus California School and Riverside County’s Val Verde School District.

Pegasus California School reportedly issued diplomas resembling those from Val Verde schools in California. This was a significant draw for Chinese students aspiring to join the prestigious University of California system. The audit suggests that high-ranking officials in the Department of Education and Val Verde School District were instrumental in advancing this program.

Steven Ma collaborated with former California superintendent Tom Torlakson, Val Verde school administrator Michal McCormick, and consultant Dave Long. Their efforts aimed to secure the Chinese students’ admission into the University of California, a scheme described as “sketchy” by a university official, according to Business Insider.

The audit uncovered potential evidence of bribes or kickbacks, manifesting as both direct and indirect financial incentives for California officials. These included a $13,600 campaign donation to Torlakson, a consulting position offered to McCormick, and complimentary trips to China for school board members.

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Federal prosecutors have since launched a probe into Pegasus California School’s ties to California agencies.

“Our responsibility is to safeguard the integrity of public education and ensure that taxpayer resources are used lawfully and transparently,” said Riverside County Superintendent of Schools Dr. Edwin Gomez in a statement.

“This audit identified serious concerns that merit further review by the appropriate authorities. We will continue to act with integrity, follow the law, and ensure that the interests of students and the public remain at the center of every decision,” he added.

Steven Ma, who also ran an education firm called Think Tank Learning, profited handsomely from his education ventures — buying up a $364,000 private plane, a $115,000 Mercedes-Benz, and a home worth more than $2.8 million in wealthy Pleasanton, according to bankruptcy papers filed after the company went belly-up during Covid.

He also spent some of his spoils on political candidates — including Ma, a longtime Dem official who served in the State Assembly and on the Board of Equalization before becoming state Treasurer in 2019.

Starting in early 2023, Steven Ma made six hefty donations totaling $13,200 to Fiona Ma’s campaign for lieutenant governor — just months before she personally visited the school, promising access to “internship and employment opportunities,” according to a blog post on the school’s website.

Ma paid a visit to Pegasus School in September 2023 after announcing she was going on vacation in an Instagram post.

“Fiona chose Pegasus as the only school to visit in China, which shows the California government’s recognition and attention to Pegasus,” the school boasted in the now-archived blog post.

“I am honored to come to Qingdao Pegasus California School today to see many students perform and communicate with them. If they want to intern in California, they can come to me, I will provide some internship and employment opportunities,” the post read, appearing to paraphrase Ma.

The school’s alumni page shows numerous students enrolled UC Berkeley, UCLA. UC Santa Barbara and other stop state schools.

Steven Ma was a longtime supporter of Ma’s political aspirations, contributing $7,600 to her State Board of Equalization campaign between 2015 and 2016, according to campaign records.

He then kicked in $14,000 to her campaign for treasurer in 2018, records show.

The California Department of Education was forced to issue a cease-and-desist to Pegasus demanding it delete references to state agencies.

Ma’s campaign did not respond to a request for comment.