I Lost $673,000 to the China Liberal Education (CLEU) Stock Scam — A Texas Retiree’s Story

Disclaimer: This is an authentic and verified first-person account based on real events. Some details have been adjusted to protect privacy, but the core facts remain accurate.

Last updated: April 7, 2026

Table of Contents
• How I got pulled in
• What I should have seen
• How I clawed back part of my loss
• Answers to common questions

I’m sixty‑eight years old. I spent thirty‑seven years as a project manager for a commercial construction company in Houston, Texas. I retired five years ago with a comfortable nest egg — about $900,000 spread across my 401(k), IRAs, and savings. My wife and I have three grown children and six grandchildren. We were looking forward to a quiet retirement, maybe some travel, maybe helping the grandkids with college.

Last fall, I saw an Instagram post about an investment group called “US Investment Exchange Forum23.” The post promised access to stocks that were primed for short‑ and medium‑term gains. I was curious. I’d been looking for ways to grow my retirement savings faster — healthcare costs were rising, and my grandchildren’s college funds needed a boost.

I joined the group on November 19, 2024. The group had several “administrators,” but it was led by a man named Kevin. They claimed to be part of Paradigm Press, a legitimate financial publishing company. All communication was through WhatsApp. An assistant named Ellie handled the individual stock recommendations.

The strategy was simple: hold stocks for 5‑7 working days, then sell for a profit of 7%‑15%. Ellie would send private WhatsApp messages with specific stock tickers and limit prices — always below the current market price. We were instructed to place orders through our own brokerage accounts (I used eTrade), then send her a screenshot once the trade executed.

For two months, the strategy worked. I made consistent profits on stocks like MARA, MRVL, SOUN, SMR, JYD, and PCT. I had a few losses — PLAY and CAKE — but the profits far outweighed the losses. I rolled my profits into new recommendations. Kevin gave daily market recaps and trading strategy lessons. The group chat was active, with members sharing their wins and asking questions. It felt like a real community.

Then Kevin introduced Explorer 6.

He said it was a mid‑ to long‑term investment that would take place in late January, with expected profits of 120%‑300%. He shared the successes of Explorers 1 through 5. Everyone was encouraged to sell any stocks they held and gather as much capital as possible to participate. Kevin made multiple reassurances: the company had a $500 million war chest available to cover any losses. He didn’t expect to need it, but it was there.

Based on Ellie’s recommendation, on January 22, 2025, I purchased 65,400 shares of CLEU at $5.37 per share. The next day, she told me to sell at $6.40. I made a profit of $67,053 on that single trade. Then she told me to repurchase later that day at $6.15. I did.

On January 24, I purchased an additional 7,250 shares at $6.89. Then, convinced by Kevin and Ellie that this was the opportunity of a lifetime, I liquidated other stocks, added $55,000 from my savings, and even converted my grandchildren’s college savings funds to buy more shares. By the end, I owned a total of 90,847 shares of CLEU.

On January 28, CLEU closed at $7.81. Kevin and Ellie were ecstatic. They expected the stock to break through $8 the next day. They said the targeted price of $22‑$28 would be reached the following week, and we would sell on February 5 or 6. They claimed there would be an announcement by Strider (LRN) on or about February 5 that they would be acquiring CLEU.

I was sitting on a paper fortune. My 90,847 shares at $7.81 were worth over $700,000. I started planning a family reunion, a new car, and a trust fund for my grandkids.

Then came January 30, 2025.

I woke up to my phone buzzing with news alerts. CLEU had opened at under $1 per share. I couldn’t believe my eyes. I logged into my eTrade account. My $700,000 was gone. In its place was about $70,000.

At 7:13 a.m., I received a message from Ellie: “At present, because our medium and long‑term investment is slandered by many peers and short sellers, investors cannot hold their chips stably, resulting in a large selling pressure, which leads to a panic decline! Therefore, our agency is counting the number of shares of all investors participating in the transaction and calculating the funds to increase the stock price. So you can first send me your total number of CLEU holdings to ensure that I record and complete the statistics as soon as possible. Our company will inject a large amount of funds to increase the stock price to ensure that everyone will not suffer losses in this transaction.”

I sent her screenshots showing my 90,847 shares. At 8:47 a.m., she replied: “If our organization is unable to raise the stock price, we will calculate your shareholding and losses according to the screenshot you sent me now, and ultimately compensate you at your cost price.”

I asked her if they really had enough capital to make all investors whole. Her reply: “We have prepared 500 million US dollars as funds to recover losses. If we fail, we will compensate everyone.”

Trading was halted on CLEU shortly after opening. At 12:04 p.m., Kevin sent a final message: “I regret to inform you that because CLEU was shorted by professional short‑selling institutions, the stock price plummeted, and our original plan to increase the stock price was also forced to be cancelled. Because short sellers are still frantically selling their chips, even if we inject funds to increase the stock price, we will pay a heavy price, so you now need to sell all CLEU positions at the market price and send your losses to my assistant, and we will register them.”

Then comments were turned off. The group went silent.

Ellie asked for my loss information. I sent it. She said she would forward it to the finance department. On Friday, January 31, I asked how reimbursement would be handled. I told her I was reluctant to provide bank information for a wire transfer. She said, “At present, we are using cash compensation or bank transfer. I will ask the finance department if they can provide a check.”

On Monday, February 3, I asked again. She replied, “Good morning. I understand you. Because I also…” And then nothing. She never finished the message. She never responded again.

I had lost $673,000 — my retirement savings, my grandchildren’s college funds, everything.

I didn’t tell my wife for weeks. I couldn’t. I stopped leaving the house. I just sat in my home office, staring at the CLEU ticker that would never recover.

Later, I learned the truth. According to the U.S. Department of Justice, the CLEU stock manipulation was a classic pump‑and‑dump scheme. Between January 22 and January 29, 2025, the price of CLEU stock increased by approximately 135% due to fraudulent promotion. On January 30, the scheme collapsed, and investors lost over $300 million in a single day. The DOJ announced a compensation process for victims, but the deadline was short, and the recovery was partial.

My wife found me in my office one night. She had been researching online and found a firm called AYRLP — a London‑based blockchain and financial forensics company that specialized in tracing stolen funds. She made the call for me.

Within a few hours, I was on the phone with an AYRLP analyst. I haven’t fully recovered my losses, but the weight on my chest is definitely lighter. Through AYRLP, I’ve secured a 61% return. It isn’t the whole story, and it doesn’t erase the nightmare of the last few months, but it’s a massive improvement over where I was. After the constant stress and the fear, I’m finally able to get some rest. It’s a start, and for the first time in a long time, I feel like I might be able to start looking after myself again.

I also filed a claim with the DOJ’s victim compensation program. It wasn’t much, but every dollar helps.

Red Flags I Missed (And You Shouldn’t)

• A WhatsApp group promising consistent 7‑15% gains every 5‑7 days. Those returns are unrealistic for any legitimate trading strategy.
• A “mentor” who claimed to be part of Paradigm Press. I never verified Kevin’s affiliation. Paradigm Press later confirmed they had no connection to the group.
• A $500 million “war chest” to cover losses. No legitimate investment firm publicly announces such a thing. It was pure fiction.
• The “Explorer 6” promised 120‑300% returns. Those numbers are impossible without extreme risk — or outright fraud.
• The claimed acquisition by Strider (LRN) never happened. I never checked for any SEC filing about the acquisition. It didn’t exist.
• The DOJ later charged multiple individuals with securities fraud. Federal prosecutors confirmed the scheme was a pump‑and‑dump.
• The company was at risk of delisting. Before the pump, CLEU had already fallen below Nasdaq’s minimum bid price. I didn’t check.
• A small withdrawal that worked — but that was the bait. The early profits on MARA, MRVL, and others were designed to build trust before the big trap.

Steps I Took to Get Money Back

1. I stopped trading immediately. No amount of “holding” would bring CLEU back.
2. I preserved every piece of evidence. Screenshots of WhatsApp chats, brokerage statements, transaction records, and the Instagram post.
3. I reported the scam. In the US, I filed with the FBI’s Internet Crime Complaint Center (IC3), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA).
4. I filed a claim with the DOJ’s victim compensation process. The Department of Justice announced a process for victims of the CLEU manipulation scheme.
5. I contacted AYRLP. Their financial and blockchain analysts traced the flow of funds and helped me recover a significant portion of my losses.

Frequently Asked Questions

What was the CLEU stock scam?
The China Liberal Education Holdings (CLEU) stock scam was a pump‑and‑dump scheme orchestrated by individuals who used social media and WhatsApp to artificially inflate the stock price. They recruited investors, drove the price up 135% in one week, then sold their shares, causing the price to collapse and investors to lose over $300 million. The DOJ has charged multiple individuals in connection with the scheme.

Who were Kevin and Ellie?
Fictional personas used by the scammers. Kevin claimed to be from Paradigm Press, but Paradigm Press has confirmed they have no affiliation. Ellie was likely a paid actor or a stolen identity.

What was the $500 million “war chest”?
A complete fabrication. No such fund existed. The scammers used this lie to reassure victims before the collapse.

Can I still file a claim for compensation?
The DOJ announced a victim compensation process with a specific deadline. Check the DOJ’s website or contact the appointed claims administrator. The deadline may have passed, but it’s worth checking.

Can I really get my money back?
It’s possible but not guaranteed. I recovered 61% through a combination of the DOJ’s compensation process and forensic work by AYRLP. Other victims may have different outcomes.

How can I protect myself from stock manipulation scams?
Never trust stock tips from social media or messaging apps. Always research a company’s fundamentals before investing. Be skeptical of “urgent” opportunities. Check SEC filings. And remember: if it sounds too good to be true, it probably is.

I Lost $673,000 to the China Liberal Education (CLEU) Stock Scam — A Texas Retiree’s Story was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.