^{The complaint and affidavit in support of an arrest warrant against Sherry Xue Li and Lianbo “Mike” Wang is photographed on Monday, July 18, 2022. | Department of Justice | AP}

Decade-Long $30 Million Fraud Uncovered

Sherry Xue Li, a resident of Oyster Bay, New York, pleaded guilty Wednesday in federal court to charges related to a sprawling investment fraud that defrauded more than 150 victims worldwide of over $30 million. The scheme involved selling foreign nationals access to a 2017 fundraiser for then-President Donald Trump, including a photo opportunity, as well as false promises of lawful permanent residency in the United States.

The Scheme: False Promises and Political Access

The U.S. Attorney’s Office for the Eastern District of New York revealed that Li, along with co-conspirator Lianbo Wang, convinced investors that their money was tied to a legitimate real estate development—the Thompson Education Center (TEC) Project in Sullivan County, New York. In reality, the project was fictitious.

Li and Wang assured foreign nationals, predominantly Chinese citizens, that their investments would secure them legal residency status in the U.S. This bait helped attract millions of dollars in foreign-sourced funds.

Illegal Campaign Contributions

Beyond investment fraud, Li and Wang illegally sold political access by funneling foreign money into U.S. election campaigns. Prosecutors detailed how the pair collected tens of thousands of dollars per person from foreign nationals to attend American political fundraisers.

A key event was a June 28, 2017 fundraiser for President Trump’s re-election campaign, where 12 foreign nationals paid $93,000 each for entry. Li and Wang then donated approximately $600,000 of this money to the hosting committee. They used photographs of themselves with President Trump taken at the event to promote the TEC Project and attract more investors.

Legal Violations and Consequences

It is illegal under U.S. law for foreign nationals to contribute to federal political campaigns. Though Li and Wang are naturalized U.S. citizens originally from China, they exploited their status to mask the source of these funds.

U.S. Attorney Joseph Nocella condemned the scheme, saying, “Li defrauded over 150 victims through years of deception and sought to profit by selling access to the democratic process. This undermines the core principle of fair and transparent elections free from foreign influence.”

Sentencing and Forfeitures

Sherry Xue Li faces up to 20 years in prison and is scheduled to be sentenced on December 5. She has agreed to forfeit $31.5 million in cash and assets across three properties.

Her co-conspirator, Lianbo Wang, pleaded guilty last year to charges including unlawful monetary transactions and conspiracy to defraud the United States. He received a five-year prison sentence.

Trump Campaign Not Implicated

It is important to note that the Trump campaign itself was not accused of wrongdoing in connection with this case.