Guilty Plea in $30M Investment Fraud Scheme Targets Foreign Nationals and U.S. Politicians

A 53-year-old woman from Long Island, Sherry Xue Li, has pleaded guilty to orchestrating a nearly decade-long scheme to defraud investors out of more than $30 million in a fictitious development project. Li and her co-defendant, Lianbo Wang, promised investors their investments would guarantee them lawful permanent resident status in the U.S. They also sold foreign investors access to U.S. politicians at fundraisers by collecting foreign-sourced funds and unlawfully contributing those funds to U.S. political campaigns and committees. The scheme involved over 150 investors, including foreign nationals from China, who were persuaded to invest in the project with false assurances of government support and the potential for green cards.

Key Takeaways:

• Sherry Xue Li pleaded guilty to money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission's administration of campaign finance laws.
• Li and her co-defendant, Lianbo Wang, defrauded investors out of over $30 million in a fictitious development project called the Thompson Education Center.
• The defendants promised foreign investors access to U.S. politicians at fundraisers in exchange for $500,000 investments, which would allegedly guarantee them lawful permanent resident status.
• Li and Wang transferred the funds through bank accounts held in the names of various companies they created, using the money for personal expenses and to make political contributions to prominent politicians.
• Over 150 investors, including foreign nationals from China, were persuaded to invest in the project with false assurances of government support and the potential for green cards.
• The defendants used the funds to make unlawful contributions to U.S. political campaigns and committees, including a joint fundraising committee for the then-president of the U.S.
• Li faces up to 20 years in prison when sentenced and agreed to forfeit $31.5 million and property at three locations.
• Her co-defendant, Lianbo Wang, pleaded guilty in 2024 and was sentenced to 60 months of imprisonment.

Statistics:

• Over $30 million was defrauded from investors in a fictitious development project.
• 150 or more investors were involved in the scheme.
• The defendants promised foreign investors access to U.S. politicians at fundraisers for $500,000 investments.
• Li and Wang used the funds to make political contributions totaling $600,000 in 2017.
• The defendants used $16.5 million from EB-5 investors and $15 million from stock investors.
• No EB-5 investor received a green card and there was no initial public offering (IPO) or stock listing.
• The scheme involved foreign nationals from China and other countries.

Sources:

• U.S. Department of Homeland Security's Immigration and Customs Enforcement: "New Yorker enters guilty plea after ICE investigation uncovers $30M investment fraud scheme that sold foreign nationals access to prominent US politicians"
• U.S. Department of Justice: No specific reference provided in the original text.