Sherry Xue Li, a Chinese resident of Oyster Bay, Long Island, pleaded guilty on the 30th to conspiracy to launder money and defraud the United States, and to obstructing the Federal Election Commission (FEC) enforcement of campaign finance laws, in federal court in the Eastern District of New York. She admitted that she and co-defendant Lianbo Wang orchestrated a decade-long scheme to defraud investors of $30 million through fictitious development projects. The two also illegally donated funds raised from foreign investors to U.S. political campaigns and sold foreign investors access to U.S. politicians. She faces up to 20 years in prison. As part of her plea agreement, she agreed to forfeit $31.5 million and three properties. Wang Lianbo pleaded guilty in 2024 to engaging in illegal currency transactions and conspiracy to defraud the United States and was sentenced to 60 months in prison.
53-year-old Li Xue Li and 48-year-old Wang Lianbo operated a fictitious development, the Thompson Education Center (TEC), in Sullivan County, New York. Many of the victims were Chinese citizens living in China. The two defendants promised victims that a 500,000 yuan investment would allow them to obtain legal permanent residency through the EB-5 investment immigration program. They also misrepresented the project’s progress and the support of government officials. Li Xuerui and Wang Lianbo defrauded a total of 30 million yuan, transferring the proceeds to bank accounts in the names of various companies established by Li Xuerui to cover personal expenses, including clothing, jewelry, housing, vacations, fine dining, and political donations. The defendants used the investment funds in the TEC project solely to create a false image and deceive investors.
Over 150 investors invested at least 31.5 million yuan in the TEC project, of which approximately 16.5 million yuan came from EB-5 investors and approximately 15 million yuan came from equity investors, as the defendants promised an initial public offering (IPO). However, no EB-5 investor in the TEC project received a green card, and the project did not IPO.
The defendants also acted as straw donors, soliciting illegal contributions from foreign nationals to support the campaigns of American politicians. They promised foreign nationals opportunities to participate in American political events and interact with politicians in exchange for fees. For example, the indictment alleges that the two individuals collected $93,000 each from 12 foreign nationals to attend a fundraiser hosted by then-President Trump on June 28, 2017. They donated $600,000 of that amount to the fundraising committee as a political contribution, becoming the event’s top donor. The two defendants attended the fundraiser and posed for a photo with the then-President, which they then used to solicit investments in the TEC project.
U.S. Attorney Joseph Nocella, Jr., said Li Xuerui “defrauded more than 150 victims, both domestically and internationally, over many years with lies and fraud, attempting to profit from selling the democratic process. She sought to undermine one of this nation’s fundamental institutions: fair, transparent elections free from illicit foreign influence.” His office is committed to investigating and prosecuting fraudsters who steal victims’ hard-earned money.
