Powerful California official pocketed thousands from Chinese school founder at center of fraud probe

California state treasurer Fiona Ma took thousands in campaign donations from the founder of a Chinese boarding school at the center of a bombshell fraud probe — and reportedly promised to hook up the children of Chinese elites with jobs and internships during a secret visit in 2023.

Ma, who is running for lieutenant governor, has accepted more than $30,000 from Steven Ma, the founder of a $34,000-per-year, Qingdao-based boarding school under investigation for allegedly churning out bogus California diplomas for well-connected Chinese students.

An astonishing 1000-page audit conducted by Riverside County found “a pattern of favors, official acts, promises, and payments” related to a government-approved pilot program between Pegasus California School and Val Verde School District in Riverside County.

Pegasus California School handed out diplomas that looked like they were issued by Val Verde schools in California — a selling point for Chinese students wanting a spot in the elite University of California system — with the help of top officials with the Department of Education and Val Verde School District who pushed the program, according to the audit.

Steven Ma worked closely with former California superintendent Tom Torlakson, Val Verde school administrator Michal McCormick and consultant Dave Long to help catapult the Chinese students into coveted University of California spots — in an arrangement deemed “sketchy” by one university official cited by Business Insider.

The audit found evidence of “potential bribes and/or kickbacks in the form of direct and indirect financial benefits” to the California officials — such as a $13,600 campaign contribution to Torlakson, a paid consulting offer to McCormick, and free 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.