Imagine a prestigious international school, promising a golden ticket to California's universities, endorsed by the state's top officials. Now, imagine that school is at the centre of a damning government audit alleging potential fraud and illegal practices. This is the explosive reality connecting California's State Treasurer, Fiona Ma, to the Pegasus California School in Qingdao.
Why does this matter to you? Because it raises urgent questions about influence, oversight, and who is truly vetting the institutions shaping young minds and spending public money. A high-stakes political race hangs in the balance, and the implications could ripple through international education.
Promises of Opportunity and a Web of Connections
During a visit to the school in September 2023, Fiona Ma, then a candidate for Lieutenant Governor, made a direct offer to students. According to a recap on the school's website, she told them she would personally provide internship and job opportunities in California. School marketing proudly featured her visit, claiming it had "received high recognition from the California government."
But the California Department of Education tells a very different story. Last month, it sent a cease-and-desist letter to Pegasus, demanding it stop claiming state endorsement. "The California Department of Education is not connected to, does not approve and does not endorse Pegasus California School," the letter stated bluntly.
The Damning Audit That Changes Everything
This contradiction forms the backdrop to a scathing audit by California's Riverside County. The report, triggered by a 2021 Business Insider investigation, found the Val Verde Unified School District improperly issued diplomas to Pegasus students. More alarmingly, it identified "sufficient evidence" of potential fraud, misappropriation of funds, bribery, and conflicts of interest.
"There appears to be a pattern of favors, official acts, promises, and payments," the audit concluded, though it did not accuse Ma of any wrongdoing. The findings have been referred to the county prosecutor and state authorities. California's Attorney General, Rob Bonta, told reporters "that type of conduct is of great interest to us."
A Founder's Financial Support and a Denial of Involvement
So, how deep do the ties go? The school's founder, businessman Steven Ma (no relation to Fiona Ma), is a long-time political donor. Campaign records show he and his company contributed over £37,000 to Fiona Ma's various campaigns between 2015 and 2023, including for her current Lieutenant Governor bid.
A photo of his business card even lists him as the finance committee chair for that campaign. Fiona Ma confirmed she knows Steven Ma and respects his "commitment to education" but insists she has "no involvement in his private business dealings." She paid for the 2023 China trip personally, stating she was unaware of any audits at the time.
What Happens Next?
With the June primary less than two months away, Fiona Ma is in a tight race for Lieutenant Governor. This revelation injects a potent dose of scrutiny into her campaign. For parents and students, it’s a stark lesson in vetting overseas educational promises. And for California officials, it’s a pressing test of accountability and transparency in an increasingly globalised education market.
The story is far from over. As authorities dig deeper, the full picture of this trans-Pacific partnership—and its consequences—is yet to be revealed.