A cloud of controversy now surrounds California State Treasurer Fiona Ma as allegations surface regarding promises made to students at a Chinese boarding school embroiled in a diploma fraud investigation. The school, Pegasus California School in Qingdao, China, has been under scrutiny for its unusual partnership with a California school district and the potential for illicit financial practices.
Investigations revealed a troubling pattern: a series of favors, promises, and financial contributions that culminated in the approval of a pilot program allowing Chinese students to earn U.S. high school diplomas while remaining overseas. The audit uncovered evidence suggesting potential fraud and misappropriation of funds within the California education system.
Adding another layer to the story, Ma publicly visited Pegasus in 2023, offering a direct promise to help its students secure jobs and internships within California. Her visit was prominently featured on the school’s website, touted as a sign of “recognition and attention” from the California government.
Financial records reveal a significant connection between Ma’s campaigns and the founder of Pegasus, Steven Ma. Over $13,200 in direct contributions, alongside an additional $23,800 from his college-admissions consulting firm, flowed into Ma’s political coffers since 2010.
The concerns surrounding Pegasus first gained public attention in a 2021 report detailing its questionable relationship with the Val Verde Unified School District. The school charged upwards of $34,000 annually, operating as a private boarding school while leveraging resources from the California district.
A 2018 agreement outlined an exchange program: ten students from Val Verde would travel to China, while Pegasus students would visit California schools. However, the audit suggests the benefits largely flowed to district officials and the school itself, rather than its students, including travel perks and “great publicity.”
Pegasus allegedly made bold claims to prospective students and their families, guaranteeing admission to a top 100 U.S. university with a full tuition refund if that promise wasn’t met. The University of California – Riverside even initially committed to scholarships for qualifying students from the school.
Following the audit’s completion, the California Department of Education issued a cease-and-desist order, demanding Pegasus remove claims of official endorsement. The department explicitly stated it has no connection to, nor approves of, the school’s operations.
The cease-and-desist highlighted a violation of California law prohibiting non-governmental entities from implying a connection with state government. This legal action underscores the seriousness of the allegations and the state’s attempt to distance itself from the controversial school.
The unfolding situation raises critical questions about the intersection of campaign contributions, international education partnerships, and the integrity of California’s public school system. The investigation continues to reveal a complex web of relationships and potential wrongdoing.
