New Yorker enters guilty plea after ICE investigation uncovers $30M investment fraud scheme that sold foreign nationals access to prominent US politicians

NEW YORK — An investigation by ICE’s Homeland Security Investigations New York, in coordination with its law enforcement partners, led a Long Island woman to plead guilty to money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance laws July 30. Sherry Xue Li, 53, orchestrated a nearly decade-long scheme to defraud investors out of more than $30 million in a fictitious development project.

As part of the scheme, Li and her co-defendant, 48-year-old Lianbo Wang, falsely promised those investors their investments would guarantee them lawful permanent resident status in the U.S. Li and Wang, both of Oyster Bay, also sold foreign investors access to U.S. politicians at fundraisers by collecting foreign-sourced funds from them and unlawfully contributing those funds to U.S. political campaigns and committees.

“Sherry Li’s guilty plea today demonstrates HSI New York’s commitment to dismantling transnational schemes that try to exploit our immigration and financial laws. Irrespective of the deceitful, and oftentimes creative methodologies that fraudsters pose to unwitting victims, we will ensure they do not take advantage of our laws that are made to protect individuals and entities from swindlers,” stated HSI New York Special Agent in Charge Ricky J. Patel.

Patel announced the guilty plea alongside U.S. Attorney for the Eastern District of New York Joseph Nocella Jr., FBI New York Assistant Director in Charge Christopher G. Raia, and IRS Criminal Investigation Special Agent in Charge Harry T. Chavis Jr.

The Scheme to Defraud Investors

Li and Wang defrauded investors out of more than $30 million in a fictitious development project in Sullivan County called the Thompson Education Center. Many of the victims were foreign nationals located in the People’s Republic of China who were persuaded to invest in the project by the defendants’ false assurances. The defendants told victims that $500,000 investments would guarantee them lawful permanent residence in the U.S. through the EB-5 investment visa program administered by the Department of Homeland Security. The defendants falsely represented the progress they were making on the project and its support from government officials. They also distributed promotional materials that contained photographs of Li with prominent U.S. politicians to falsely convey government support for the project.

Li and Wang siphoned off the money they fraudulently obtained from investors by transferring the funds through bank accounts held in the names of various companies that Li had created. Once the funds were in those accounts, Li and Wang used the funds to pay for personal expenses, including clothing, jewelry, housing, vacation travel, upscale dining and political contributions to prominent politicians. The portion of the invested capital Li and Wang actually spent on the TEC Project was used merely to create and perpetuate the fiction that it was a viable development project that was actually under construction. For example, Li and Wang hired contractors, engineers and other professionals to create architectural drawings and plans and perform minor work on or around the development site. They showed these to potential investors to mislead them into believing the TEC Project had a realistic probability of completion and of delivering the returns on investment the pair had promised.

Ultimately, more than 150 investors invested at least $31.5 million in the TEC Project, including approximately $16.5 million from EB-5 investors who were promised green cards in return for their investments, and approximately $15 million from stock investors who were promised that an initial public offering would take place. No EB-5 investor in the TEC Project ever received a temporary or permanent green card and the TEC Project did not have an IPO or list on any stock exchange.

Selling Access to U.S. Politicians

In furtherance of their scheme, Li and Wang also acted as “straw donors” for foreign nationals to unlawfully contribute to campaigns supporting U.S. politicians and political committees. They promised foreign nationals access to U.S. political events and politicians in exchange for a fee. The pair used the money they received from foreign nationals to fund political contributions and falsely identified themselves and other U.S. citizens as the contributors of the funds, in violation of the Federal Election Campaign Act and FEC regulations. In some cases, Li and Wang used TEC investors’ investment funds to make the political contributions they used to gain access to the political events; at those events, they took photographs with elected officials to use as marketing tools in soliciting investments from foreign nationals.

For example, as alleged in the complaint, Li and Wang charged 12 foreign nationals $93,000 per person for admission to a June 28, 2017, fundraising event with the then-president of the U.S. They used the funds they collected from the foreign nationals to unlawfully make $600,000 in political contributions in their own names — $270,500 from Li and $329,500 from Wang — to the joint fundraising committee. At the time they made these contributions, they were the largest contributors; the committee was unaware of the charged schemes. Li, Wang and their foreign national guests attended the fundraiser and took photographs with the president. They later used one of those photos to solicit investments.

“Li defrauded more than 150 victims in the U.S. and abroad through years of lies and deception and sought to profit by selling access to the democratic process,” said Nocella. “In doing so, she attempted to corrupt a fundamental institution in this country — fair and transparent elections free from unlawful foreign influence. Our office is committed to investigating and prosecuting predatory fraudsters who steal victims’ hard-earned money.”

“Sherry Li admitted to her role in a long running fraud, profiting off of the exploitation of our nation's political and immigration system,” said Raia. “Li's corrupt scheme may have led to initial profits but ultimately will result in the loss of her freedom. The FBI will continue to investigate and hold accountable any malicious actor attempting to manipulate the electoral or immigration process of the U.S. for personal gain.”

“Li’s victims thought that they were investing in the American dream, but instead were left in a nightmare of fraud and deceit,” said Chavis. “While she pocketed the money and traveled on lavish vacations, not one EB-5 or stock investor received what they were promised in return for their backing. Now, with today’s plea, she will finally move forward in facing the consequences of her selfish acts.”

When sentenced, Li faces up to 20 years in prison. As part of her plea agreement, she agreed to forfeit $31.5 million and property at three locations.

In 2024, Wang pleaded guilty to engaging in unlawful monetary transactions and conspiracy to defraud the U.S. and was sentenced to 60 months of imprisonment.