A New York resident, Sherry Xue Li, has pleaded guilty in a sprawling $30 million scheme involving fraudulent green cards and the illicit sale of access to prominent U.S. politicians. This high-profile case highlights significant vulnerabilities within investment visa programs and the potential for foreign influence in American politics, drawing considerable attention to the intersection of immigration, finance, and political ethics.
Li, a naturalized U.S. citizen from Oyster Bay, admitted to defrauding over 150 individuals who collectively invested more than $31.5 million into her deceptive development venture, the Thompson Education Center (TEC). Investors were promised U.S. green cards through the federal EB-5 investment visa program or substantial financial returns, neither of which ever materialized for any of Li’s victims, leaving many in legal and financial limbo.
The EB-5 Visa Fraud hinged on the pretense of a legitimate educational development, initially touted as a “Chinese Disneyland” and later rebranded as TEC. Despite elaborate claims of job creation and visitor attraction, prosecutors revealed that Li and her accomplice, Lianbo “Mike” Wang, spent minimal funds on the actual project, maintaining only a facade to perpetuate the fraud and entice further investment from unsuspecting foreign nationals.
Beyond the investment scheme, Li engaged in a sophisticated political access scheme, using money from foreign victims to make illegal political donations. These funds were funneled to U.S. politicians and political committees, deceptively presented as contributions from herself or other U.S. citizens. This illicit activity allowed her to sell foreign nationals, predominantly Chinese, exclusive access to events where they could secure photo opportunities with elected officials, including former President Donald Trump.
U.S. Attorney Joseph Nocella emphasized the severity of Li’s actions, stating, “In doing so, she attempted to corrupt a fundamental institution in this country—fair and transparent elections free from unlawful foreign influence.” Li’s guilty plea in Central Islip federal court covered charges of conspiracy to commit money laundering and conspiracy to defraud the United States, underscoring the serious nature of her offenses against national integrity.
The legal consequences for Sherry Xue Li are substantial; she faces up to 20 years in prison at her December 5 sentencing and has agreed to forfeit $31.5 million along with properties at three different locations. Her accomplice, Lianbo “Mike” Wang, the marketing director and general manager of TEC, previously pleaded guilty and received a 60-month prison sentence, indicating the coordinated nature of this extensive criminal enterprise.
Investigations revealed that the fraudulently acquired funds were largely diverted for personal enrichment rather than the TEC project. Li and Wang indulged in lavish personal expenses, including high-end clothing, jewelry, housing, luxury travel, upscale dining, and, critically, the illicit political contributions that formed a core part of their deceptive marketing strategy. These photo-ops with officials were then used to lure more investors.
A notable instance of this illicit marketing involved charging 12 foreign nationals, mainly Chinese, $93,000 each for entry to a fundraising event with Donald Trump in June 2017. The subsequent photo of Li with the president became a powerful tool to solicit further investments. Although Li and Wang nominally donated $600,000 to the fundraiser’s joint committee, the committee was unaware that the money originated from foreign sources, violating campaign finance laws.
Li’s history of political donations was not limited to Republicans; public records show contributions to Democratic figures as well, including $55,000 to then-New York Gov. Andrew Cuomo and $2,500 to then-New York City Mayor Bill de Blasio in 2013 and 2014. These recipients have not been accused of any wrongdoing, highlighting Li’s widespread attempts to leverage political connections for her illicit schemes.
