New York Woman Sentenced to Nine Years for $30 Million Scheme Funding Political Campaigns

Central Islip, N.Y. – Sherry Xue Li, a New York businesswoman, was sentenced to nine years in federal prison on Friday, February 27, 2026, for orchestrating a financial scheme that defrauded over $30 million from foreign investors. A portion of the stolen funds was funneled into U.S. Political campaigns, including a fundraiser for former President Donald Trump, according to the Department of Justice .

Details of the Scheme

Li, 54, of Oyster Bay, New York, pleaded guilty in July 2025 to charges of money laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s (FEC) administration of campaign finance laws . Prosecutors stated that Li and her co-defendant, Lianbo Wang, convinced investors, primarily from China, to invest $500,000 each in a fictitious real estate development project with the false promise of securing lawful permanent resident status in the U.S. .

Instead of funding a legitimate project, Li and Wang used the money for personal expenses, including clothing, jewelry, housing, travel, and dining . They also allegedly provided investors with access to U.S. Politicians and used the proceeds to make illegal contributions to political campaigns and committees.

Trump Fundraiser Connection

In 2017, Li and Wang charged investors $93,000 each for access to a fundraiser for Donald Trump. They then used $600,000 of those funds to make illegal donations to the committee hosting the event . Li reportedly took a photograph with Trump and his wife, Melania, at the fundraiser and used the image to solicit further investments in the fraudulent development project .

Prosecutors emphasized that the political campaigns and committees were unaware of the scheme and were not accused of any wrongdoing .

Sentencing and Forfeiture

In addition to the nine-year prison sentence, Sherry Xue Li was ordered to forfeit $31.5 million and property at three locations, and to make restitution to her victims . Her co-defendant, Lianbo Wang, was sentenced to five years in prison . U.S. Attorney Joseph Nocella stated that Li “faces justice for her cynical schemes” and that she “peddled false promises and outright lies” to investors .