Sherry Xue Li, a resident of Oyster Bay, New York, was sentenced to 108 months in prison by United States District Judge Gary R. Brown at the federal court in Central Islip for her role in a scheme that defrauded investors out of more than $30 million and facilitated illegal contributions to U.S. political campaigns. Li pleaded guilty in July 2025 to money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance laws.
According to prosecutors, Li and co-defendant Lianbo Wang convinced foreign nationals, primarily from China, to invest $500,000 each into a fictitious development project known as the Thompson Education Center (TEC Project) in Sullivan County, New York. The pair falsely promised that these investments would secure lawful permanent resident status through the EB-5 visa program. They also misrepresented progress on the project and distributed promotional materials featuring photographs with prominent U.S. politicians to suggest government support.
Instead of using investor funds for development purposes, Li and Wang diverted money through accounts controlled by companies they established. These funds were then used for personal expenses such as luxury travel, clothing, jewelry, housing, upscale dining, and political contributions. Only minimal amounts were spent on activities intended to maintain an appearance that the TEC Project was legitimate.
Over 150 investors contributed at least $31.5 million—approximately $16.5 million from EB-5 investors seeking green cards and about $15 million from stock investors who were told there would be an initial public offering (IPO). No EB-5 investor received any immigration benefit or return on investment; nor did an IPO occur.
Li and Wang also sold access to U.S. politicians by acting as straw donors for foreign nationals wishing to attend fundraising events or meet officials. In one example cited by prosecutors, they charged twelve foreign nationals $93,000 each for admission to a June 2017 fundraiser with the then-President of the United States and used those funds—totaling $600,000—to make political contributions under their own names.
United States Attorney Joseph Nocella Jr., speaking about the case alongside representatives from the FBI’s New York Field Office, Homeland Security Investigations New York (HSI), and IRS-Criminal Investigation New York (IRS-CI), said: “Li orchestrated an elaborate fraud to steal tens of millions of dollars from more than 150 victims around the world,” stated United States Attorney Nocella. “She peddled false promises and outright lies to her many investors and stuffed her pockets while they suffered devastating losses. Meanwhile, she sought to obstruct the operation of free and fair elections in our country and sold access to the democratic process to the highest bidder. Today she faces justice for her cynical schemes. Our Office will stop at nothing to hold fraudsters to account and to keep America’s elections free from unlawful foreign influence.”
Michael Alfonso of HSI added: “By defrauding over 150 victims out of $30 million and facilitating illegal contributions to U.S. political campaigns, Sherry Li put personal profit above the law and public trust…No matter how elaborate or deceptive the tactics used by fraudsters, we remain steadfast in protecting individuals and organizations from those who seek to abuse the safeguards established by our laws.”
Harry T. Chavis Jr., Special Agent in Charge at IRS-CI New York said: “Li turned the American dream into a fraud driven nightmare—stripping investors of their savings while spending their money on luxury trips…With today’s sentencing and more than $30 million forfeiture order, Li will now answer for the damage she caused.”
As part of her sentence Li was ordered both restitution payments matching victim losses—$31.5 million—and forfeiture orders including three properties.
Wang previously pleaded guilty in 2024 for related offenses including engaging in unlawful monetary transactions; he was sentenced earlier this year (2024) to five years’ imprisonment.
The prosecution was led by Assistant United States Attorneys Andrew D. Reich and Meredith A. Arfa with support from paralegal specialists Magdalena St Surin and Rebecca Roth; asset forfeiture matters are handled by Assistant United States Attorney Claire S Kedeshian.
The U.S Attorney’s Office for Eastern District of New York oversees federal crime prosecutions across Brooklyn, Queens Staten Island Nassau County Suffolk County with offices located in Brooklyn & Central Islip; it is led by Breon Peace as noted on its official website. The office also supports community outreach initiatives & victim assistance efforts according its official website.
