Sherry Xue Li admitted to orchestrating a years-long investment scheme that defrauded more than 150 victims through false promises of permanent U.S. residency and access to high-profile politicians, including President Trump.

According to The Hill, Li pleaded guilty Wednesday to money laundering conspiracy and conspiracy to defraud the U.S. government by obstructing the Federal Election Commission's administration of campaign finance laws.

The Oyster Bay, New York resident now faces up to 20 years in prison after agreeing to forfeit $31.5 million and property at three locations as part of her plea agreement.

Elaborate Scheme Involved Fictitious Education Center

Li and her co-defendant Lianbo Wang created a sophisticated fraud operation centered around a non-existent development called the Thompson Education Center (TEC).

The pair falsely promised foreign investors that by investing in this fictitious project, they would qualify for permanent U.S. residency through the EB-5 visa program, which allows immigrants who make significant investments in U.S. businesses to obtain green cards.

Prosecutors revealed that Li and Wang defrauded investors of more than $30 million through their elaborate scheme, transferring funds through various company bank accounts Li had established.

Political Access Sold to Foreign Nationals

Li and her accomplice operated as "straw donors" to unlawfully funnel foreign money into U.S. political campaigns and political action committees.

The fraudsters charged foreign nationals substantial fees with promises of access to American politicians, using the collected money to make political contributions while falsely identifying themselves and other U.S. citizens as the true donors.

According to prosecutors, the pair charged 12 foreign nationals $93,000 each to attend a political fundraiser, subsequently making $600,000 in political contributions under their own names to the hosting committee.

Trump Photos Used to Solicit Further Investments

Li and Wang leveraged their political connections to enhance the credibility of their fraudulent operation.

The U.S. Attorney's Office for the Eastern District of New York stated that Li, Wang, and their foreign guests attended a June 28, 2017 fundraiser where they took photographs with President Trump.

After obtaining these photos, Li used the images of herself with the President to solicit additional investments in the fictional Thompson Education Center project, further extending the reach of the fraud.

Why This Story Matters

This case underscores how financial scams can have far-reaching effects beyond monetary losses. It highlights vulnerabilities in the intersection between money, immigration policy, and political influence. It also reminds the public of the critical need for transparency and enforcement in the campaign finance system.

Conclusion

On August 3, 2025, Sherry Xue Li pleaded guilty in federal court to defrauding over 150 people of more than $30 million by promoting a sham development and offering unlawful political access. Her scheme involved exploiting the EB-5 visa program, laundering money through fake companies, and funneling foreign funds into a political fundraiser attended by then-President Donald Trump.

Li agreed to forfeit over $31 million and multiple properties, while facing a sentence of up to 20 years in prison. Prosecutors say the fraudulent tactics used by Li and her co-defendant illustrate a dangerous attempt to undermine public trust in fair political and financial systems.