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 in Central Islip federal court. Li was convicted for her role in a money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance laws. Over nearly ten years, Li orchestrated a scheme that defrauded investors of more than $30 million through a fictitious development project.
Li and her co-defendant, Lianbo Wang, falsely assured investors that their investments would secure them lawful permanent resident status in the U.S. They also sold foreign nationals access to American politicians at fundraisers by collecting funds from them and unlawfully contributing those funds to political campaigns and committees. As part of her sentence, Li must forfeit $31.5 million and properties at three locations, and make restitution to victims for the same amount. Wang pleaded guilty in 2024 to related charges and received a 60-month prison sentence. Li pleaded guilty in July 2025.
The case was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge at the FBI’s New York Field Office; Michael Alfonso, Acting Special Agent in Charge at Homeland Security Investigations (HSI) New York; and Harry T. Chavis, Jr., Special Agent in Charge at IRS-Criminal Investigation (IRS-CI) New York.
“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.”
“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. Li’s sentencing today underscores HSI New York’s and federal law enforcement’s shared commitment to hold accountable those who orchestrate international schemes designed to undermine our immigration and financial systems. 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,” stated HSI New York Acting Special Agent in Charge Alfonso.
“Li turned the American dream into a fraud driven nightmare—stripping investors of their savings while spending their money on luxury trips. Not one EB 5 or stock investor saw the promised return. With today’s sentencing and more than $30 million forfeiture order, Li will now answer for the damage she caused,” stated IRS-CI New York Special Agent in Charge Chavis.
According to court documents, Li and Wang targeted investors with promises tied to a supposed development project called Thompson Education Center (TEC Project) located in Sullivan County, New York. Many victims were foreign nationals from China who were told that investing $500,000 would guarantee them permanent residency through the EB-5 visa program managed by U.S. Citizenship and Immigration Services (USCIS). The pair misrepresented both progress on this project as well as its governmental support using promotional materials featuring photographs with prominent politicians.
Funds collected from investors were routed through bank accounts under various company names controlled by Li before being used for personal expenses such as clothing, jewelry, housing, travel, dining out at upscale restaurants—and political contributions intended for high-profile politicians. Only minimal amounts were spent on activities that sustained an illusion that TEC Project was legitimate: hiring professionals for minor work or plans shown off during pitches.
In total, more than 150 investors put about $31.5 million into TEC Project—including roughly $16.5 million from EB-5 visa hopefuls promised green cards that never materialized—and another approximately $15 million from stock buyers expecting an IPO which never occurred.
Additionally, authorities say Li and Wang acted as “straw donors” so foreign nationals could illegally contribute funds toward U.S political campaigns via campaign events attended after paying large sums—such as charging twelve foreign nationals $93,000 each for admission into a June 2017 fundraiser with then-President Donald Trump—then using those proceeds ($600,000 total) as campaign donations made under their own names rather than those actually providing funds.
The prosecution was led by Assistant United States Attorneys Andrew D. Reich and Meredith A. Arfa with asset forfeiture handled by Claire S. Kedeshian.
The U.S Attorney's Office for Eastern District of New York supports community outreach initiatives including victim assistance efforts across Brooklyn, Queens Staten Island Nassau County Suffolk County where it maintains offices in Brooklyn Central Islip serving as lead federal prosecutor handling both criminal prosecutions civil representations within its jurisdiction.
