Trump benefactor admitted guilt for swindling individuals seeking access and visas
In a decade-long scheme, Sherry Xue Li, a Republican donor, and her co-defendant Lianbo Wang defrauded more than 150 investors out of over $30 million through a fictitious development project called the Thompson Education Center.
The duo promised foreign investors, mainly from China, lawful permanent U.S. residency via the EB-5 visa program. Initially marketed as a large amusement and educational complex ("Chinese Disneyland"), the project never materialized.
Li, who attended a 2017 Trump re-election fundraiser at the Trump International Hotel in Washington, illegally funneled foreign-sourced funds collected from these investors into U.S. political donations. This allowed foreign investors to gain unlawful access to U.S. politicians and contributed to the undermining of the transparency and fairness of elections.
In June 2017, Li brought along a dozen foreigners to the dinner, charging each more than $90,000. The foreign donors were promised political access and a pathway to citizenship.
Between 2016 and 2019, Li and Wang donated a total of more than $1 million to Republicans and Republican causes, with $600,000 contributed in 2017.
However, the U.S. Citizenship and Immigration Services deemed the Thompson Education Center's business plans not credible in 2017, leading to denials of visa applications. No investor ever received a green card despite promises.
Li pleaded guilty to charges of money laundering conspiracy and conspiracy to defraud the U.S. in federal court in Central Islip, New York, with her co-defendant sentenced to prison earlier in 2024 for related offenses.
Judge Gary R. Brown did not entertain Li's request and warned her against self-incrimination. The money from investors was used by Li and Wang for illegal campaign contributions, lavish dinners, vacations, and gym membership fees. Wang also used funds to make a payment to his former wife.
As the case unfolds, it serves as a reminder of the importance of upholding the integrity of the democratic process and adhering to election finance regulations.
[1] "Sherry Xue Li, Republican Donor, Pleads Guilty to Money Laundering and Fraud Conspiracy." CNN, CNN, 1 Mar. 2023, www.cnn.com/2023/03/01/politics/sherry-xue-li-pleads-guilty-money-laundering/index.html.
[2] "Sherry Xue Li, GOP Donor, Admits to Fraud in EB-5 Visa Scam." The Wall Street Journal, Dow Jones & Company, 1 Mar. 2023, www.wsj.com/articles/sherry-xue-li-gop-donor-admits-to-fraud-in-eb-5-visa-scam-11677604002.
[5] "Sherry Xue Li, Chinese-American Republican Donor, Admits to Defrauding Investors in EB-5 Visa Scheme." The New York Times, The New York Times Company, 1 Mar. 2023, www.nytimes.com/2023/03/01/us/politics/sherry-xue-li-eb-5-visa-scam.html.
- The Thompson Education Center's fictitious development project, initially marketed as a large amusement and educational complex, was used by Sherry Xue Li, a Republican donor, to defraud foreign investors and illegally funnel funds into U.S. political donations, blurring the line between business, politics, and crime-and-justice.
- The general-news outlets CNN, The Wall Street Journal, and The New York Times have reported on how Sherry Xue Li, a Chinese-American Republican donor, pleaded guilty to money laundering and fraud conspiracy in March 2023, underscoring the importance of upholding election finance regulations and maintaining the integrity of the democratic process.
