California condemns 'unlawful' claims by Chinese school at center of Business Insider report

The California Department of Education has issued a strong warning to a Chinese boarding school, demanding an end to its claims of having been established with the agency's endorsement. This follows a revealing report by Business Insider that raised questions about the legitimacy of Pegasus California School, a private high school located in Qingdao, which charges significant tuition fees and promotes itself as a pathway to prestigious U.S. universities. Recent investigations, including a federal probe and a critical state audit, have surfaced serious allegations against the institution. The audit, conducted by the Riverside County Office of Education, found ample evidence suggesting fraudulent activities and financial misconduct, leading to referrals for further legal scrutiny. In response to inquiries regarding its website's assertions of being founded with the California Department of Education's support, the department sent a cease-and-desist letter to the school and relevant regulatory bodies. Len Garfinkel, the department's general counsel, emphasized the legal ramifications of using state names in a misleading manner, clarifying that the California Department of Education does not endorse or associate with Pegasus California School. Pegasus' founder, Steven Ma, acknowledged the department's concerns and pledged to revise the school's online materials. While the English version of the website has been updated to reflect a more accurate statement regarding its founding, discrepancies remain on the Chinese version, which still suggests a connection to California education authorities. The school's previous marketing tactics included offering California high school diplomas and a perceived advantage in the competitive University of California admissions process. Reports have indicated close ties between Pegasus and former California education officials, raising further questions about ethical practices and potential conflicts of interest. The recent audit revealed that these officials may have benefited from their association with Pegasus, highlighting a need for more thorough investigations into the relationships and financial transactions involved. The California Department of Education reiterated the importance of ensuring proper oversight and addressing allegations of misuse of state resources. As investigations continue, the educational community is watching closely. The department is committed to examining the updates provided by Pegasus and ensuring that the institution's claims do not mislead prospective students and their families. The scrutiny surrounding Pegasus California School serves as a critical reminder of the need for integrity and transparency in educational practices, both domestically and internationally.