A prominent donor to President Donald Trump has pleaded guilty to running a multimillion-dollar fraud scheme that preyed on foreign nationals hoping to gain permanent residency in the United States.
Sherry Xue Li, 53, entered a guilty plea on Wednesday to charges of money laundering conspiracy and conspiracy to defraud the United States by obstructing the administration of campaign finance laws, according to federal prosecutors and reporting by The Independent.
Li and her associate, Lianbo Wang, orchestrated an elaborate scheme for nearly a decade, promising wealthy foreign investors access to powerful U.S. politicians and a pathway to lawful permanent residence, commonly known as a green card, through the federal EB-5 visa program.
Following an investigation by FBI New York, @HSINewYork, @IRSCI_NY, and @EDNYnews, Sherry Xue Li pled guilty to a $30 million investment fraud scheme and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance… pic.twitter.com/7W45gi8BxQ
— FBI New York (@NewYorkFBI) July 30, 2025
Prosecutors said the duo raised more than $30 million through a sham development project they called the Thompson Education Center, a supposed for-profit college to be built in Sullivan County, New York. Investors were told their money would not only help fund a legitimate real estate and education venture, but also secure them a path to U.S. citizenship and entrée into American political circles.
In reality, the development never materialized. Instead, much of the money was diverted to personal expenses and to make large political donations, including to Donald Trump’s 2016 presidential campaign and various Republican committees.
The pair reportedly used some of the funds to gain access to political events, including a 2017 Republican National Committee event where Li was photographed with Trump. These images were then used to bolster their credibility in presentations to potential investors.
Two NY residents arrested on investment scam that used Trump fundraiser (incdlg a picture here from from 2017) to trick victims. Sherry Xue Li and Lianbo Wang will be presented to a Brooklyn federal judge today at 3pm. #EDNY pic.twitter.com/RVpVZbADml
— Marta Dhanis (@MartaDhanis) July 18, 2022
According to the U.S. Attorney’s Office in Manhattan, Li and Wang misled investors by suggesting that their contributions were compliant with campaign finance laws, when in fact, they were foreign nationals prohibited from donating to U.S. political campaigns. The funds were funneled through shell companies and personal bank accounts to mask their origin.
“Li and her co-defendant exploited the hopes of foreign nationals seeking lawful status in the United States, falsely promising green cards and political connections in exchange for millions of dollars,” said U.S. Attorney Damian Williams in a statement. “Instead, they used the money to enrich themselves and to unlawfully influence U.S. elections.”
The case also highlights continued scrutiny around the EB-5 visa program, which offers green cards to foreigners who invest at least $800,000 in U.S. development projects that create jobs. Critics have long argued that the program is vulnerable to fraud and abuse.
Li’s sentencing is scheduled for December 18. Under the terms of her plea deal, she faces a potential prison sentence and has agreed to forfeit assets obtained through the fraudulent scheme.
The guilty plea marks a dramatic fall from grace for a woman who once moved in elite political circles and touted herself as a major player in U.S.-China relations.
Under Trump’s continued leadership, immigration remains a central focus of his administration. He has upheld strict enforcement measures, tightened asylum rules, expanded border security efforts, and prioritized merit-based immigration.
His administration continues to focus on illegal immigration and visa loopholes as national security risks. Therefore, his association with Li comes as a blow that his political adversaries will highlight.
