California school district allegedly gave fraudulent diplomas to Chinese students to enter US colleges

An extensive audit revealed a California school district allegedly issued diplomas to students in China in addition to potentially "unlawful financial practices associated with the district’s international program."

The Val Verde Unified School District (VVUSD) in Riverside, California, was audited by the county’s superintendent of schools in a more than 1,000-page review that alleges the VVUSD gave unauthorized diplomas to nonresident, Chinese students at the district’s "sister school," Pegasus California School, in Qingdao, China.

"Our audit, commissioned by Dr. Gomez, raises serious concerns about academic integrity, taxpayer fraud, and may even implicate national security," Larson LLP partner Stephen G. Larson told Fox News Digital. "We found that a California public school district improperly issued diplomas to students in China, and the broader record shows those California credentials may have been used to create false legitimacy for students seeking entry into American universities."

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Riverside County Superintendent of Schools Dr. Edwin Gomez had authority to commission the audit under Education Code section 1241.5(b) after a 2021 Business Insider investigative report raised questions about the school district.

"Our responsibility is to safeguard the integrity of public education and ensure that taxpayer resources are used lawfully and transparently," Gomez said in a statement. 

"This audit identified serious concerns that merit further review by the appropriate authorities," Gomez added. "We will continue to act with integrity, follow the law, and ensure that the interests of students and the public remain at the center of every decision."

The audit identified evidence that California high school diplomas "may have been issued to students who did not meet applicable legal or residency requirements," and that fraud and illegal fiscal practices were present in the school district. 

Fox News Digital sat down with Riverside County Sheriff and GOP gubernatorial candidate Chad Bianco, who told Fox that the questionable partnership with the Chinese school is an example of corruption and fraud that exists across California.

"This school in Riverside County shows how corrupt these people really are, where they couldn't care less about taxpayer money, they couldn't care less about their own schools, it's how they can benefit themselves," Bianco told Fox News Digital. "And so they benefit themselves by gaining, we have no idea how much money, by fraudulently giving diplomas to kids living in China."

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"These kids from China now come into the U.S. and get accepted into these colleges and universities, and California students get nothing," Bianco added.

Chinese students who received diplomas through the partnership were allegedly promised acceptance to top U.S. universities.

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The audit revealed that teachers from the California school district allegedly taught at the school in China, and were provided living accommodations in furnished apartments. 

"Those who accepted a position at Pegasus took an unpaid leave of absence and did not receive a salary or benefits from VVUSD; Pegasus paid annual salaries and provided benefits, including medical and dental benefits, a fully furnished apartment with all utilities paid, and meals," the audit reads.

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As for the content being taught to students in China, the report uncovered that "pages regarding Taiwan had been ripped out of the history books" and that many instructors were not credentialed appropriately. 

The report also alleges that "there is some evidence of potential bribes and/or kickbacks in the form of direct and indirect financial benefits" as a result of VVUSD’s leadership’s relationship with the Chinese school and claims there could be ties between the school and previous superintendent elections in southern California.

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A spokesperson for VVUSD told Fox News Digital they are complying with the audit. 

"The District will continue to fully comply with the audit process regarding Val Verde’s partnership with Pegasus California School from 2016–2020," the spokesperson said. "We remain focused on providing transparency and continuing to serve our students, families, and community."

Reports indicate that Pegasus California School was previously listed on their website, though it no longer appears under the list of schools within the district.

The Pegasus California School website’s "news" section has not been updated since September 2024.