New York, NY – A Long Island woman pleaded guilty Tuesday to federal charges in a sweeping $30 million fraud scheme that promised foreign investors U.S. green cards and exclusive access to high-profile American politicians.
Sherry Xue Li, 53, entered the plea in federal court after a years-long investigation by Homeland Security Investigations (HSI) New York, in coordination with the FBI and IRS. Li admitted to conspiracy to commit money laundering and conspiracy to defraud the United States by obstructing campaign finance laws.
According to prosecutors, Li and her co-defendant Lianbo Wang, 48, ran the scam for nearly a decade, falsely claiming to be developing a massive education center in Sullivan County, NY, known as the “Thompson Education Center” (TEC). In reality, the development was fictitious, and more than 150 investors — mostly foreign nationals from China — were duped out of over $31.5 million.
Many of the victims were told their $500,000 investments would qualify them for permanent U.S. residency through the EB-5 visa program. Prosecutors said not a single investor ever received a green card, nor did the project go public or produce returns.
Li and Wang funneled the funds through a network of shell companies and spent the stolen money on luxury travel, jewelry, designer clothing, real estate, fine dining, and high-dollar political donations.
Investigators said the pair also acted as illegal “straw donors,” charging foreign nationals up to $93,000 each to attend political fundraisers. They used the funds to make $600,000 in unlawful campaign contributions in their own names, gaining access to events with U.S. politicians, including a June 2017 fundraiser with the then-president. Photographs taken at these events were later used as marketing tools to recruit new investors.
As part of her guilty plea, Li agreed to forfeit $31.5 million and property at three locations. She faces up to 20 years in federal prison when sentenced.
The U.S. Attorney’s Office for the Eastern District of New York, FBI, IRS, and HSI all participated in the investigation.
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Key Points
- Sherry Xue Li, 53, pleaded guilty to laundering $30M in investor funds from fake development project
- Scheme included selling political access to foreign nationals and misusing campaign funds
- None of the more than 150 victims received the promised green cards or investment returns
