A New York entrepreneur has pleaded guilty to operating a vast scheme that swindled more than $30 million from overseas investors and spent some of the cash to gain access to US politicians, including now-former President Donald Trump.
Sherry Xue Li, 48, of Oyster Bay, pleaded guilty to court this week that she and her business partner, Lianbo Wang, offered Chinese investors green cards and large returns with a phony real estate venture. They actually used the funds on luxury items, vacations, and political contributions.
Li will face as much as 20 years behind bars when sentenced in December. Wang was sentenced to five years in March.
How the Scam Worked
Li and Wang led investors to contribute $500,000 each under the false impression that they’d become eligible for US permanent residency under the EB-5 visa program. However, rather than constructing something, they invested in a life of indulgence and gaining access to politics.
They bought designer clothing, trips, upscale restaurants and passes to high-end political functions.
Buying Political Access
Li and Wang, in 2017, charged 12 foreign nationals $93,000 each to attend a Trump fundraiser at his Washington, DC hotel. They then used the funds to make $600,000 in illegal campaign contributions in the names of those guests.
During the event, Li posed with Trump and First Lady Melania and went on to use the photo in pamphlets to recruit additional investors. She also posed for pictures with other prominent politicians, including past New York Governor Andrew Cuomo.
Prosecutors claim the involved campaigns were not aware the funds came from overseas and have not been charged with anything.
What Happens Now
Li has been imprisoned since her 2022 arrest. Under terms of her plea agreement, she’ll forfeit $31.5 million and three properties.
“This wasn’t about stealing money, it was about selling access to our system of government and deceiving people who put their future in her hands,” US Attorney Breon Peace said.
It’s a cautionary story about how quickly ambition, greed, and politics can get mixed together and how painfully the consequences fall when they do.
