An audit has revealed that the Val Verde Unified School District (VVUSD) in Riverside, California, allegedly issued unauthorized diplomas to Chinese students at Pegasus California School in Qingdao, China. The audit, commissioned by Riverside County Superintendent of Schools Dr. Edwin Gomez, spans over 1,000 pages and highlights concerns about potential fraud and unlawful financial practices within the district's international program.

The investigation, which followed a 2021 report by Business Insider, found that VVUSD improperly issued diplomas to nonresident students without ensuring they met necessary course requirements and proficiency standards. The audit also uncovered possible financial misconduct, including the misuse of funds and conflicts of interest involving former education officials. According to Politico, these officials, including former state superintendent Tom Torlakson, were involved in establishing the partnership with Pegasus and promoting it to California universities.

The audit report indicates that VVUSD teachers were encouraged to teach at Pegasus, receiving benefits such as furnished apartments, while their salaries were improperly increased upon returning to the U.S. Additionally, the audit found that the diplomas may have been used to gain entry into American universities, raising concerns about academic integrity and national security.

Dr. Gomez has notified the district attorney and other authorities about the findings, and the California Department of Education is reviewing the report. The department stated that it will not tolerate any misuse of public funds and supports further investigation. A spokesperson for VVUSD said the district is cooperating with the audit and remains committed to transparency and serving its community.

The audit has prompted further scrutiny of the district's relationship with Pegasus and the involvement of businessman Steven Ma, CEO of ThinkTank Learning, who allegedly helped establish the Chinese school. Ma has denied any wrongdoing, stating that Pegasus was a legitimate educational program.

The audit's findings have sparked calls for accountability and raised questions about the oversight of international educational partnerships. The Riverside County Superintendent of Schools and the Riverside County Office of Education have pledged to cooperate fully with any further investigations and ensure appropriate corrective actions are taken.