New York Businesswoman Receives Nine-Year Prison Sentence for Multi-Million Dollar Fraud and Illegal Political Donations
A New York businesswoman has been sentenced to nine years in federal prison for orchestrating a sophisticated financial scheme that defrauded foreign investors of over $30 million. Prosecutors revealed that some of the illicit funds were illegally funneled into United States political campaigns, including a high-profile fundraiser for former President Donald Trump.
Substantial Financial Penalties and Restitution Ordered
Sherry Xue Li, a 54-year-old resident of Oyster Bay, New York, was ordered to forfeit $31.5 million and properties at three separate locations. Additionally, she must provide restitution to her numerous victims who suffered devastating financial losses. Li, who has been detained since her arrest in 2022, pleaded guilty last year to charges including money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission's administration of campaign finance laws.
Her co-defendant, Lianbo Wang, also pleaded guilty to similar charges and received a five-year prison sentence. Both individuals are naturalized United States citizens who exploited their positions to execute this elaborate fraud operation.
Deceptive Investment Scheme Targeting Foreign Nationals
According to federal prosecutors, Li and Wang spent years convincing investors, predominantly from China, to contribute $500,000 each to a fictitious development project. They falsely promised that these investments would guarantee lawful permanent resident status in the United States, preying on individuals seeking immigration opportunities.
Instead of using the funds for legitimate development purposes, the duo diverted millions of dollars for extravagant personal expenses. These included luxury clothing, expensive jewelry, housing costs, vacation travel, and upscale dining experiences, according to court documents and prosecution statements.
Illegal Political Contributions and Fundraiser Access
The fraudulent operation extended into the political arena, with Li and Wang selling investors access to United States politicians and using the proceeds to make illegal contributions to political campaigns and committees. In one particularly notable instance, they charged investors $93,000 each for admission to a 2017 Trump fundraiser, then used that money to make illegal donations totaling $600,000 to the committee hosting the event.
Prosecutors noted that Li even took a photograph with Donald Trump and his wife Melania at the fundraiser, subsequently using this image to solicit additional donations to the fake development project. The campaigns and committees involved were unaware of the fraudulent scheme, and no allegations of criminal wrongdoing were lodged against them.
Justice Served for Cynical Financial Crimes
United States Attorney Joseph Nocella stated that Li "faces justice for her cynical schemes" and emphasized how she "peddled false promises and outright lies to her many investors and stuffed her pockets while they suffered devastating losses." Li's lawyer did not immediately respond to requests for comment following the sentencing announcement.
This case highlights the serious consequences of financial fraud and illegal campaign finance activities, particularly when they involve the exploitation of foreign investors seeking legitimate immigration pathways to the United States. The substantial prison sentences and financial penalties demonstrate the federal government's commitment to prosecuting such complex financial crimes that undermine both investor confidence and the integrity of political processes.
