Sherry Xue Li, Money Laundering Conspiracy, New York 2024

CENTRAL ISLIP, NY – Sherry Xue Li, a resident of Oyster Bay, New York, has confessed to masterminding a nearly decade-long fraud that bilked investors out of over $30 million and brazenly sold access to prominent U.S. politicians. Li pleaded guilty today at the federal courthouse in Central Islip to charges of money laundering conspiracy and conspiracy to defraud the United States, specifically targeting the Federal Election Commission’s (FEC) administration of campaign finance laws.

The scheme revolved around a fictitious development project – the Thompson Education Center (TEC) in Sullivan County, New York. Li and her co-defendant, Lianbo Wang, falsely promised over 150 victims, many of them foreign nationals from the People’s Republic of China (PRC), that a $500,000 investment would guarantee them lawful permanent resident status in the United States through the EB-5 visa program. It was a lie, a calculated deception to line their pockets while leaving investors with nothing.

But the fraud didn’t stop at stolen investment money. Li and Wang also engaged in a disturbing practice: selling access to U.S. politicians. They collected funds from foreign investors and illegally funneled those contributions into U.S. political campaigns and committees, effectively putting a price tag on political influence. This wasn’t just about money; it was a direct assault on the integrity of the American electoral system.

United States Attorney for the Eastern District of New York, Joseph Nocella, Jr., minced no words in condemning Li’s actions. “Li defrauded more than 150 victims…through years of lies and deception and sought to profit by selling access to the democratic process,” Nocella stated. “She attempted to corrupt a fundamental institution in this country—fair and transparent elections free from unlawful foreign influence.” Li now faces up to 20 years in prison. As part of the plea deal, she’s agreed to forfeit a staggering $31.5 million, along with properties at three locations.

This isn’t a standalone case. Lianbo Wang previously pleaded guilty to engaging in unlawful monetary transactions and conspiracy to defraud the United States in 2024, receiving a 60-month prison sentence. The investigation, a collaborative effort between the FBI, Homeland Security Investigations (HSI), and the Internal Revenue Service Criminal Investigation (IRS-CI), highlights the complex nature of these transnational financial crimes. “Irrespective of the deceitful…methodologies that fraudsters pose to unwitting victims, we will ensure they do not take advantage of our laws,” said HSI New York Special Agent in Charge Ricky J. Patel.

The IRS-CI underscored the devastating impact on the victims, who believed they were investing in the “American dream” only to be plunged into a “nightmare of fraud and deceit.” While Li enjoyed lavish vacations, her investors received nothing in return for their backing. As Harry T. Chavis, Jr., Special Agent in Charge of IRS-CI New York, put it, she will now “finally move forward in facing the consequences of her selfish acts.” The Grimy Times will continue to follow this case as sentencing approaches and further details emerge regarding the full scope of the political connections exploited in this brazen scheme.

RELATED: Oyster Bay Fraudster Pleads Guilty to $30 Million Scheme

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