California Treasurer Fiona Ma Scrutinized Over Ties To Qingdao 'Pegasus' School Amid Diploma-Fraud Audit

California State Treasurer Fiona Ma, a Democratic candidate for lieutenant governor, is drawing scrutiny after a China-based boarding school under a Riverside County audit publicized her 2023 visit and her public offer to help students secure U.S. internships and jobs. The school's founder and a related consulting firm have donated tens of thousands of dollars to Ma's political campaigns.

Audit Findings And Allegations

Pegasus California School, based in Qingdao, China, was the subject of an investigation completed in February by Riverside County education officials. The audit was launched amid concerns that the Val Verde Unified School District may have improperly issued California high school diplomas to students enrolled at Pegasus overseas. Investigators reported evidence pointing to possible fraud, misappropriation of funds and other irregular fiscal practices.

The Riverside audit says investigators found "a pattern of favors, official acts, promises, and payments" that contributed to approval of a pilot program allowing wealthy Chinese students to obtain a California diploma while remaining overseas.

Fiona Ma's 2023 Visit

Pegasus posted an account of Ma's 2023 visit on its website, describing her as the only California official she visited in China and framing the trip as evidence of "the California government's recognition and attention to Pegasus." The archived post quoted Ma:

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.(Getty Images)

"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."

Fox News Digital reported that it reached out to Treasurer Ma for comment about the visit and to the Val Verde Unified School District to ask whether district officials were aware of Ma's trip; neither provided a response to those requests for comment, according to the report.

Donations And Institutional Links

Campaign finance records show Steven Ma (no relation to Fiona Ma), identified as Pegasus' founder, donated more than $13,200 to Fiona Ma's campaigns dating back to 2021. In addition, ThinkTank Learning Inc., a college-admissions consulting firm linked to the Pegasus founder, contributed $23,800 to Ma's campaigns since 2010. Together these donations total more than $37,000.

Press scrutiny of Pegasus predates the Riverside audit. Business Insider published an investigative piece in 2021 alleging an improper relationship between Pegasus and the Val Verde Unified School District. That reporting — and subsequent inquiries — helped prompt the recent audit.

Agreements, Promises, And Programs

Documents reviewed by news outlets include a February 2018 Memorandum of Understanding (MOU) between Pegasus and Val Verde. The MOU described reciprocal exchange opportunities: in return for diplomas and teachers, ten Val Verde students would be able to travel to Pegasus for a 10-day visit at $300 per student, and Pegasus students would have opportunities to visit California schools.

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.

A 2019 MOU cited in the audit referenced a commitment from the University of California, Riverside that students meeting certain academic thresholds would "receive a UCR scholarship." Pegasus has reportedly advertised guarantees of admission to a U.S. top-100 university or full tuition reimbursement if that outcome was not achieved. Pegasus also reportedly charged up to $34,000 per year in tuition for some students.

The audit did not document direct monetary repayments from Pegasus to Val Verde but noted benefits — travel, consulting work, scholarships, and publicity — that appeared to advantage officials and the district as much as, or more than, local students.

State Response

After the audit concluded in February and its findings were announced publicly in March by Riverside County officials, the California Department of Education issued a cease-and-desist order directing Pegasus to remove claims on its website that it was founded in 2016 with the department's "blessing and support." The department cited California Business and Professions Code Section 17533.6, which prohibits non-governmental entities from implying state endorsement or approval.

"The California Department of Education is not connected to, does not approve and does not endorse Pegasus California School," the cease-and-desist stated.

What Remains Unresolved

Riverside County's audit raises significant questions about district oversight, the role of outside organizations and the propriety of relationships between California officials and foreign-based programs. Investigations and public scrutiny remain ongoing, and affected institutions have been ordered to correct misleading claims while authorities consider next steps.

Sources: Riverside County audit (as reported publicly), Business Insider (2021), campaign finance records reviewed by media outlets, and reporting by Fox News Digital.