7 indicted in massive 'ramp-and-dump' investment fraud scheme; $214M in stolen assets seized: FBI

CHICAGO (WLS) -- Seven people have been indicted in connection with a federal investigation into a massive investment fraud scheme.

Federal agents in Chicago's FBI Field Office said they have seized $214 million in stolen assets following the investigation into what it calls a ramp-and-dump scheme aimed at defrauding thousands of investors.

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According to investigators, individuals in China pretended to be United States investment advisors on social media and would reel investors in and encourage them to purchase stock, promising serious returns on their investment.

An indictment filed last week in U.S. District Court in Chicago claims the scheme unfolded from November 2024 to February 2025.

The I-Team spoke with Special Agent Joseph M. Holzman of the FBI-Chicago Field Office who said the agency is now looking for potential victims.

"So, victims were approached on Facebook, generally, other social media platforms to be anybody but mom and pop investors that were looking for investment advice, and they clicked on links on Facebook and were redirected to WhatsApp groups, where bad actors pretending to be U.S.-based investment advisors were giving them investment advice and ultimately advised them to invest in this particular CLEU stock. The victims were all over the country, and in fact, all over the world. We are investigating in Chicago, but the victims are all over the place," he said.

The FBI is also offering advice for anyone looking to make a safe investment.

"Truly, if it sounds too good to be true, it is, I mean, if you have an investment advisor who is telling you that they can get you 200% to 400% profit within a month, if they had that advice, they would be doing it themselves, and they wouldn't need you. So, truly, if the hair is raised on the back of your neck, do your due diligence," said Holzman.

According to the indictment, the misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits and the stock price ultimately decreased significantly, at the expense of other investors, some of whom lost almost the entirety of their investment.

Seven individuals are now charged with wire fraud and securities fraud.

No one is currently in custody and warrants have been issued for their arrests in Malaysia and Taiwan.

The FBI is asking anyone who thinks they were victimized in the "ramp-and-dump" investment fraud scheme to fill out a short form.