Sherry Xue Li, $30 Million Investment Fraud, New York 2024

Sherry Xue Li, a resident of Oyster Bay, pleaded guilty to a nearly decade-long $30 million investment fraud scheme that targeted foreign nationals and U.S. investors. The scheme, which involved the sale of access to prominent U.S. politicians, was exposed earlier this year.

According to the federal indictment, Li and her co-defendant Lianbo Wang falsely promised investors that their investments in a fictitious development project would guarantee them lawful permanent resident status in the United States. Instead, Li and Wang defrauded investors out of more than $30 million.

The scheme, which was carried out over nearly a decade, involved the sale of access to U.S. politicians at fundraisers held in Sullivan County, New York. Li and Wang collected foreign-sourced funds from investors and illegally contributed those funds to U.S. political campaigns and committees.

Li pleaded guilty to money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance laws. She faces up to 20 years in prison when sentenced.

As part of her plea agreement, Li agreed to forfeit $31.5 million, as well as property at three locations. Her co-defendant, Lianbo Wang, pleaded guilty to engaging in unlawful monetary transactions and conspiracy to defraud the United States in 2024 and was sentenced to 60 months’ imprisonment.

The guilty plea was announced by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York); and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York).

Li’s scheme has left over 150 victims in the United States and abroad, who thought they were investing in the American dream but instead were left in a nightmare of fraud and deceit. The victims were persuaded to invest in the project by Li’s false assurances that their $500,000 investments would guarantee them lawful permanent residence in the United States through the EB-5 immigration program.