A New York businesswoman received a nine-year federal prison sentence Friday for orchestrating a multi-million dollar investment fraud that funneled stolen funds into U.S. Political campaigns, including a fundraiser for former President Donald Trump.
Sherry Xue Li, 54, of Oyster Bay, was also ordered to forfeit $31.5 million and property at three locations, and to provide restitution to her victims, according to the U.S. Attorney’s Office. Li pleaded guilty last year to charges of money laundering conspiracy and conspiracy to defraud the United States by obstructing the administration of campaign finance laws.
Prosecutors detailed a scheme in which Li and her co-defendant, Lianbo Wang, convinced investors – many from China – to contribute $500,000 each to a fictitious real estate development project. The investors were falsely led to believe the investment would guarantee them lawful permanent resident status in the U.S. Instead, the funds were diverted for personal expenses and illicit political donations.
According to prosecutors, Li and Wang used the stolen money to finance a lavish lifestyle, including purchases of clothing, jewelry, housing, vacation travel, and upscale dining. They also allegedly sold investors access to U.S. Politicians and used the proceeds to make illegal campaign contributions.
In 2017, Li and Wang charged investors $93,000 each for access to a Trump fundraiser, then used $600,000 of those funds to make illegal donations to the committee hosting the event. Li was photographed with then-President Trump and his wife, Melania, at the fundraiser, and prosecutors said she subsequently used the photograph to solicit further investments in the fraudulent development project.
U.S. Attorney Joseph Nocella stated that Li “faces justice for her cynical schemes,” adding, “She peddled false promises and outright lies to her many investors and stuffed her pockets while they suffered devastating losses.”
Prosecutors emphasized that the political campaigns and committees involved were unaware of the fraudulent scheme and were not accused of any wrongdoing.
Lianbo Wang, Li’s co-defendant, previously pleaded guilty to similar charges and was sentenced to five years in prison. Li’s attorney did not immediately respond to requests for comment.
