CENTRAL ISLIP, N.Y. (AP) — A New York businesswoman was sentenced Friday to nine years in federal prison for a financial scheme that defrauded foreign investors of more than $30 million and funneled some of the proceeds to U.S. political campaigns, including fundraising for President Donald Trump.
Sherry Xue Li was also ordered to forfeit $31.5 million and property in three locations and to pay restitution to the victims.
The 54-year-old Oyster Bay resident, who has been in custody since her 2022 arrest, pleaded guilty last year to conspiracy to launder money and conspiracy to defraud the United States by obstructing the Federal Election Commission’s enforcement of campaign finance laws.
Her co-defendant Wang Lianbo also pleaded guilty to similar charges and was sentenced to five years in prison.
Lee’s attorney did not immediately respond to an email seeking comment Friday, but U.S. Attorney Joseph Nocera said she “faces justice for her cynical scheme.”
“She sold false promises and outright lies to numerous investors, enriching herself while they suffered devastating losses,” he said in a statement.
Prosecutors say Li and Wang spent years convincing investors, many from China, to contribute $500,000 each to a fictitious development project with false promises that the project would guarantee their legal permanent resident status in the United States.
The two men, both naturalized U.S. citizens, used millions of dollars from those investments for personal expenses, including clothing, jewelry, housing, vacation travel and upscale dining, according to prosecutors.
They said Li and Wang also sold investors access to U.S. politicians and used the proceeds to make illegal contributions to U.S. political campaigns and committees.
In one case, the two charged investors $93,000 each for admission to a 2017 Trump fundraiser and then used the money to make illegal contributions totaling $600,000 to the committee hosting the event.
Lee even posed for a photo with Trump and his wife, Melania, at the event and used the photo to solicit donations for fake development projects, prosecutors said.
Prosecutors said the campaign and committee were unaware of the scheme and no charges of criminal misconduct have been filed against them.
