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An extended audit revealed a California schoolhouse territory allegedly issued diplomas to students successful China successful summation to perchance "unlawful fiscal practices associated with the district’s planetary program."
The Val Verde Unified School District (VVUSD) successful Riverside, California, was audited by the county’s superintendent of schools successful a much than 1,000-page reappraisal that alleges the VVUSD gave unauthorized diplomas to nonresident, Chinese students astatine the district’s "sister school," Pegasus California School, successful Qingdao, China.
"Our audit, commissioned by Dr. Gomez, raises superior concerns astir world integrity, payer fraud, and whitethorn adjacent implicate nationalist security," Larson LLP spouse Stephen G. Larson told Fox News Digital. "We recovered that a California nationalist schoolhouse territory improperly issued diplomas to students successful China, and the broader grounds shows those California credentials whitethorn person been utilized to make mendacious legitimacy for students seeking introduction into American universities."

Investigators allege a California territory engaged successful questionable dealings with a China-based school, including issuing invalid diplomas and imaginable fiscal misconduct. (Fox News Digital / iStock)
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Riverside County Superintendent of Schools Dr. Edwin Gomez had authorization to committee the audit based connected authorization nether Education Code conception 1241.5(b) aft a 2021 Business Insider investigative study raised questions astir the schoolhouse district.
"Our work is to safeguard the integrity of nationalist acquisition and guarantee that payer resources are utilized lawfully and transparently," Gomez said successful a statement.
"This audit identified superior concerns that merit further reappraisal by the due authorities," Gomez added. "We volition proceed to enactment with integrity, travel the law, and guarantee that the interests of students and the nationalist stay astatine the halfway of each decision."
The audit identified grounds that California precocious schoolhouse diplomas "may person been issued to students who did not conscionable applicable ineligible oregon residency requirements," and that fraud and amerciable fiscal practices were contiguous successful the schoolhouse district.

A California schoolhouse territory is accused of improperly issuing diplomas to students successful China done a concern with a overseas "sister school," raising ineligible and ethical concerns. (Pegasus California School website / Fox News Digital)
Fox News Digital sat down with Riverside County Sheriff and GOP gubernatorial campaigner Chad Bianco, who told Fox that the questionable concern with the Chinese schoolhouse is an illustration of corruption and fraud that exists crossed California.
"This schoolhouse successful Riverside County shows however corrupt these radical truly are, wherever they couldn't attraction little astir payer money, they couldn't attraction little astir their ain schools, it's however they tin payment themselves," Bianco told Fox News Digital. "And truthful they payment themselves by gaining, we person nary thought however overmuch money, by fraudulently giving diplomas to kids surviving successful China."
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"These kids from China present travel into the U.S. and get accepted into these colleges and universities, and California students get nothing," Bianco added.
Chinese students who received diplomas done the concern were allegedly promised acceptance to apical U.S. universities.
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Officials accidental the findings rise superior concerns astir oversight, fiscal misconduct and the integrity of the district’s planetary partnership. (Getty Images)
The audit revealed that teachers from the California schoolhouse territory allegedly taught astatine the schoolhouse successful China, and were provided surviving accommodations successful furnished apartments.
"Those who accepted a presumption astatine Pegasus took an unpaid permission of lack and did not person a wage oregon benefits from VVUSD; Pegasus paid yearly salaries and provided benefits, including aesculapian and dental benefits, a afloat furnished flat with each utilities paid, and meals," the audit reads.
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As for the contented being taught to students successful China, the study uncovered that "pages regarding Taiwan had been ripped retired of the past books" and that galore instructors were not credentialed appropriately.
The study besides alleges that "there is immoderate grounds of imaginable bribes and/or kickbacks successful the signifier of nonstop and indirect fiscal benefits" arsenic a effect of VVUSD’s leadership’s narration with the Chinese schoolhouse and claims determination could beryllium ties betwixt the schoolhouse and erstwhile superintendent elections successful confederate California.

The audit alleges a California schoolhouse territory partnered with a China-based schoolhouse to contented diplomas to nonresident students who whitethorn not person met ineligible requirements. (Zhang Ling/Xinhua via Getty Images)
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A spokesperson for VVUSD told Fox News Digital they are complying with the audit.
"The District volition proceed to afloat comply with the audit process regarding Val Verde’s concern with Pegasus California School from 2016–2020," the spokesperson said. "We stay focused connected providing transparency and continuing to service our students, families, and community."
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Reports bespeak that Pegasus California School was antecedently listed connected their website, though it nary longer appears nether the database of schools wrong the district.
The Pegasus California School website’s "news" conception has not been updated since September 2024.
Story tips tin beryllium sent to [email protected] and connected X @MizellPreston
Preston Mizell is simply a writer with Fox News Digital covering breaking news.










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