A Chinese-born American citizen just admitted to orchestrating a massive $31.5 million fraud that exploited America’s immigration system while illegally funneling foreign money into U.S. political campaigns.
Story Highlights
- Sherry Xue Li defrauded over 150 investors, primarily Chinese nationals, promising green cards that never materialized
- Foreign-sourced funds illegally channeled into U.S. political campaigns, violating federal election laws
- Fake $30+ million development project used as cover for nearly decade-long scheme
- Case exposes vulnerabilities in EB-5 visa program that Democrats have long resisted reforming
Foreign Money Infiltrates American Politics Through Immigration Fraud
Sherry Xue Li, 48, of Oyster Bay, New York, pleaded guilty on July 30, 2025, to money laundering conspiracy and conspiracy to defraud the United States by obstructing Federal Election Commission administration of campaign finance laws. The scheme, which operated from 2013 to 2022, represents exactly the kind of foreign influence operation that threatens American sovereignty and election integrity. Li exploited the EB-5 immigrant investor program, promising Chinese nationals green cards through investment in a fictitious development project called the Thompson Education Center.
🚨 𝗡𝗬 𝗪𝗼𝗺𝗮𝗻 𝗣𝗹𝗲𝗮𝗱𝘀 𝗚𝘂𝗶𝗹𝘁𝘆 𝗶𝗻 $𝟯𝟬 𝗠𝗶𝗹𝗹𝗶𝗼𝗻 𝗚𝗿𝗲𝗲𝗻 𝗖𝗮𝗿𝗱, 𝗣𝗼𝗹𝗶𝘁𝗶𝗰𝗮𝗹 𝗔𝗰𝗰𝗲𝘀𝘀 𝗦𝗰𝗵𝗲𝗺𝗲
Read more 👇https://t.co/ZzLmEuQrIl
— The Epoch Times (@EpochTimes) August 1, 2025
The case demonstrates how easily foreign actors can manipulate America’s immigration system for personal gain while simultaneously corrupting our political process. Li used photographs with U.S. politicians to legitimize her fraud, selling the illusion of political access to desperate foreign investors seeking American residency. This tactic reveals the sophisticated nature of modern influence operations targeting both our immigration system and democratic institutions.
Decade-Long Deception Exploits Broken Immigration System
Li and her co-defendant Lianbo Wang initially marketed the Thompson Education Center as a “Chinese Disneyland” featuring an amusement park, medical center, business center, college, and residential homes in Sullivan County, New York. When that fantasy failed to attract sufficient investment, they rebranded the project as a for-profit university. Neither version ever existed beyond promotional materials and false promises.
The fraudsters targeted wealthy Chinese nationals through the EB-5 program, which allows foreign investors to obtain green cards by investing at least $500,000 in qualifying U.S. projects that create American jobs. The fact that over 150 investors fell victim to this single scheme while not one received the promised green card exposes the program’s fundamental flaws.
Political Access for Sale Undermines Democratic Process
Perhaps most concerning is how Li monetized access to American politicians by funneling foreign-sourced investment funds into political campaigns. The scheme included donations to a 2017 Trump fundraiser, demonstrating how foreign money can infiltrate political events even when campaigns believe they are following proper procedures. U.S. Attorney Joseph Nocella stated that 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.”
This aspect of the case highlights the ongoing vulnerability of American elections to foreign influence, not through direct interference but through sophisticated financial schemes that bypass campaign finance laws.
Justice Served, But Systemic Problems Remain
Li faces up to 20 years in prison when sentenced on December 5, 2025, and has agreed to forfeit $31.5 million plus three properties. Her co-defendant Wang was sentenced to 60 months in federal prison after pleading guilty in March 2024. While these sentences represent appropriate consequences for the perpetrators, they cannot fully compensate the victims or repair the damage to America’s immigration and political systems.
The case should serve as a wake-up call for comprehensive EB-5 program reform and stronger enforcement of campaign finance laws. Under President Trump’s leadership, there is finally an opportunity to address these systemic vulnerabilities that previous administrations ignored or inadequately addressed.
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