Nassau Woman Pleads Guilty To $30 Million Investment Fraud Scheme: Feds

BROOKLYN, NY — An Oyster Bay woman pleaded guilty on Wednesday to money laundering conspiracy and conspiracy to defraud the U.S. in a nearly decade-long scheme that left investors out more than $30 million in a fake development project, prosecutors said.

As part of the scheme, Sherry Xue Li her co-defendant Lianbo Wang falsely promised that the investments would guarantee investors lawful permanent resident status in the United States, U.S. Attorney Joseph Nocella Jr. said.

In 2024, Wang pleaded guilty to engaging in unlawful monetary transactions and conspiracy to defraud the United States, and was sentenced to 60 months’ imprisonment, prosecutors said.

As part of her plea agreement, Li agreed to forfeit $31.5 million, as well as property at three locations, prosecutors said.

Li and Wang also sold foreign investors access to U.S. politicians at fundraisers by collecting foreign-sourced funds from them and unlawfully contributing those funds to U.S. political campaigns and committees, Nocella said.

“Li defrauded more than 150 victims in the United States and abroad through years of lies and deception and sought to profit by selling access to the democratic process,” said Nocella. “In doing so, she attempted to corrupt a fundamental institution in this country — fair and transparent elections free from unlawful foreign influence."

When sentenced, Li faces up to 20 years in prison, officials said.

“Sherry Li admitted to her role in a long-running fraud, profiting off of the exploitation of our nation's political and immigration system,” said FBI Assistant Director in Charge Christopher Raia. “Li's corrupt scheme may have led to initial profits but,ultimately, will result in the loss of her freedom."