A New York businesswoman has entered a guilty plea in connection with a substantial financial scandal that deceived more than $30 million from foreign investors, while also diverting some of the money into U.S. political campaigns, including a 2017 fundraiser for then-President Donald Trump during his first term.
Sherry Xue Li, 48, from Oyster Bay, pleaded guilty in federal court on Long Island to charges of conspiracy to commit money laundering and conspiracy to defraud the U.S. by obstructing the Federal Election Commission’s enforcement of campaign finance regulations. She faces a potential sentence of up to 20 years in prison, with her sentencing scheduled for December 5. Since her arrest in 2022, Li has remained in custody.
Co-defendant Lianbo Wang previously pleaded guilty to related charges earlier this year and has received a five-year prison sentence. Prosecutors detailed that the fraudulent activities persisted for nearly a decade, with Li and Wang persuading mainly Chinese investors to contribute $500,000 each to a non-existent development project, falsely promising them U.S. lawful permanent resident status in return. Instead of using the funds as promised, they diverted millions for personal luxuries, including clothing, jewelry, and extravagant vacations.
The pair also profited by providing investors with access to U.S. political figures at fundraising events, using the proceeds to make illegal contributions to political campaigns and committees, all of which were reportedly unaware of the illegal activities surrounding these contributions. Notably, at a fundraiser for Trump’s 2020 reelection campaign, they charged foreign nationals $93,000 each for admission, resulting in $600,000 in illegal contributions to the organizing committee.
Li’s plea agreement includes a commitment to forfeit $31.5 million along with three properties, highlighting the extent of the fraudulent operation. U.S. Attorney Joseph Nocella Jr. condemned these actions, stating that Li’s deception had impacted over 150 victims and attempted to undermine the integrity of the democratic process by introducing unlawful foreign influence into American elections.
This case underscores the critical nature of ensuring transparency and integrity in political fundraising, especially concerning foreign investors. While the actions of Li and Wang reflect negatively on the perception of political engagement, it serves as a reminder of the importance of stringent adherence to campaign finance laws to maintain the democratic process.