A New York businesswoman, Sherry Xue Li, aged 48 and residing in Oyster Bay, has pleaded guilty to multiple charges related to a complex financial fraud scheme that defrauded over $30 million from foreign investors. This scheme also involved the illegal funneling of illicit funds into U.S. political campaigns, notably including a 2017 fundraiser for President Donald Trump during his first term. Li's guilty plea was entered on Wednesday in federal court located on Long Island.
Li, who faces a potential sentence of up to 20 years in prison, is scheduled for sentencing on December 5. Her legal representative, Kevin Keating, chose not to provide any comments regarding the plea or the associated charges. It is noteworthy that she has been in detention since her arrest in 2022.
Alongside Li, her co-defendant Lianbo Wang admitted guilt to similar charges in March 2024 and subsequently received a five-year prison sentence as a consequence. The fraudulent activities orchestrated by Li and Wang spanned nearly a decade, during which they solicited investments from over 150 individuals, many of whom were Chinese nationals. They proposed that a $500,000 investment would lead to lawful permanent resident status in the U.S., a claim that was entirely fictitious.
Prosecutors have outlined that much of the funds garnered from these investments were misappropriated for personal expenditures that included luxury items such as clothing and jewelry, housing costs, vacations, and extravagant dining experiences. Additionally, Li and Wang misled investors by marketing access to political figures at fundraisers and subsequently used the revenue generated from these dubious arrangements to make illegal contributions to various U.S. political campaigns and committees. Importantly, the campaigns involved were not aware of the fraudulent practices, and authorities have not accused them of any criminal wrongdoing.
One significant event highlighted by prosecutors was a fundraiser held on June 28, 2017, at a Washington hotel, where President Trump was present to support his 2020 reelection campaign. Li and Wang reportedly charged each of the 12 foreign nationals attending the event $93,000 for entry, subsequently rerouting a sum of $600,000 for illegal contributions to the fundraising committee organizing the affair. Furthermore, Li gained a photograph with Trump and his wife, Melania, during the event. This photograph was later utilized to solicit further donations for the bogus development project.
Additionally, promotional materials including brochures were produced featuring Li and Wang alongside Trump and other political figures, including former Democratic New York Governor Andrew Cuomo. Both Li and Wang, who are naturalized U.S. citizens, also contributed significant amounts of money to various federal, state, and local campaigns, although specific campaign details remain undisclosed by authorities.
U.S. Attorney Joseph Nocella Jr. emphasized the breadth of Li's deceitful actions, stating, "Li defrauded more than 150 victims in the United States and abroad through years of lies and deception and sought to profit by selling access to the democratic process." He further warned that such activities aim to undermine a fundamental pillar of democracy: fair and transparent elections devoid of unlawful foreign interference.
As a part of her plea agreement, Li has consented to forfeit $31.5 million alongside three properties, marking a significant legal and financial consequence for her actions. The intricate nature of this case raises critical questions about foreign influence in U.S. politics and the integrity of the electoral process.
