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California State Treasurer Fiona Ma, who is running for lieutenant governor, is facing blowback for promising jobs and internships to students at a China-based boarding school accused of committing diploma fraud in conjunction with a California school district, after the school’s founder poured tens-of-thousands of dollars into her campaigns.
Pegasus California School, based in Qingdao, China, was the subject of a probe completed in February by California education officials in Riverside County, following concerns that the Val Verde Unified School District was illegally issuing diplomas to Pegasus’ China-based students. It also identified other potential concerns related to Pegasus and California education officials working for the district and the California Department of Education, indicating there was evidence of them engaging in potential fraud, misappropriation of funds and other illegal fiscal practices. The audit concluded that investigators found “a pattern of favors, official acts, promises, and payments” leading to the California Department of Education’s ultimate approval of a pilot program that allowed wealthy Chinese students to obtain a U.S. high school diploma overseas.
Meanwhile, a post on the school’s website shows Ma visiting in 2023, telling students, parents and teachers there that she would be able to help the enrollees at the school get jobs and internships back in the U.S. The same post on the school’s website heralded Ma’s visit as evidence of “the California government’s recognition and attention to Pegasus,” which became a sister-school to California’s Val Verde Unified School District in 2016 and started its pilot program issuing California diplomas a year later.
“Fiona chose Pegasus as the only school to visit in China, which shows the California government’s recognition and attention to Pegasus,” Pegasus bragged in the now-archived post from its website.
It then included an excerpt from Ma: “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.”
California Treasurer Fiona Ma smiles during an interview in San Francisco, California, U.S., on Tuesday, Dec. 18, 2018. Ma was elected California State Treasurer with more votes than any other candidate for Treasurer in the state’s history and was inaugurated on January 7, 2019. (David Paul Morris/Bloomberg)
Steven Ma, who is unrelated to Fiona Ma but is Pegasus’ founder, directly contributed over $13,200 to her campaigns for State Treasurer and Lt. Gov., according to California campaign finance records dating back to 2021.
The Pegasus founder’s college-admissions consulting firm, ThinkTank Learning Inc. also contributed $23,800 to Ma’s campaigns since 2010, according to state campaign finance records.
Fox News Digital reached out to Ma multiple times for comment on her visit to the China-based school, and to the Val Verde school district itself to inquire whether it was aware of Ma’s visit, but did not receive a response.
Business Insider released a scathing report in 2021 calling out the Pegasus California School for its improper relationship with the Val Verde Unified School District, which Business Insider argues spurred the recently completed audit into Pegasus by California education officials. The China-based school, according to Business Insider, was charging up to $34,000 a year for students to enroll and, despite drawing on Val Verde resources, it functioned as a private boarding school. The school’s own website describes itself as an “independent” international school that uses a “fee payment and registration” framework for students after gaining admission, similar to how private schools in the U.S. operate, according to a Fox News Digital review.
A Riverside County school district is accused of improperly issuing diplomas to nonresident Chinese students through a partnership with a foreign sister school, according to a lengthy audit that found potential fraud and unlawful financial practices. (Fox News Digital)
A February 2018 Memorandum of Understanding between the China-based boarding school and Val Verde, reviewed by Fox News Digital, indicated that in return for receiving diplomas and teachers from the United States, ten students from the Val Verde school district would be afforded the opportunity to travel to China and attend Pegasus for 10 days at the cost of $300 a student. It also laid out an exchange program for students at Pegasus to visit schools’ in California. While the audit does not appear to identify any clear direct repayment from Pegasus to Val Verde itself, it does highlight travel, consulting opportunities, scholarships and other perks, like “great publicity,” that benefited officials and the district more than its own students.
Meanwhile, Pegasus was allegedly telling its students and parents that it could guarantee them admission to one of the top 100 universities in the U.S., and if that didn’t happen, they would get a complete tuition reimbursement. A 2019 Memorandum of Understanding, included in the California audit, showed the University of California – Riverside even made a commitment that students who met certain academic thresholds would “receive a UCR scholarship.”
Students walk past Sather Gate on the University of California Berkeley campus in Berkeley, Calif. The university’s Board of Regents postponed a vote on allowing immigrant students without legal status to apply for university jobs until 2025 on Jan. 25, 2024. (Ben Margot/AP)
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Following the completion of the audit from Riverside County officials in February, announced publicly in March by Riverside County Superintendent of Schools Dr. Edwin Gomez, the California Department of Education issued a cease-and-desist demanding Pegasus terminate official statements on its website claiming it was founded in 2016 with the department’s “blessing and support.”
“California Business and Professions Code Section 17533.6 makes it unlawful for a non-governmental entity to use a state government name in a manner that could reasonably be interpreted or construed as implying connection, approval or endorsement by the state government,” stated the March cease-and-desist. “The above statement on your website could reasonably be interpreted or construed to imply that the California Department of Education is connected to, approves or endorses Pegasus California School. You are on notice that the California Department of Education is not connected to, does not approve and does not endorse Pegasus California School.”
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