Chinese Nationals Admit $30M Immigration Scam, Funneled Foreign Funds into U.S. Politics
Two Chinese nationals living in Long Island, New York, have pleaded guilty to orchestrating a decade-long, $30 million investment fraud scheme that targeted mostly Chinese citizens. Sherry Xue Li and Lianbo Wang falsely promised U.S. green cards and access to top American politicians through a bogus development project — exposing a troubling case of foreign interference and financial exploitation.
Li, 53, admitted in federal court to conspiracy to commit money laundering and defrauding the U.S. by obstructing campaign finance laws. Her co-conspirator Wang, 48, had previously pleaded guilty in 2024 and was sentenced to five years in prison. As part of her plea deal, Li agreed to forfeit $31.5 million and three properties. She faces up to 20 years in prison.
At the center of the scam was the fictitious "Thompson Education Center" (TEC) in Sullivan County, NY. Victims, primarily Chinese nationals, were promised U.S. permanent residency through the EB-5 investor program if they invested $500,000. Li and Wang fabricated endorsements from U.S. officials and progress updates to lure in over 150 investors.
None of the investors received green cards. There was no IPO. Instead, the funds were funneled into luxury expenses, political donations, and personal lifestyles — including designer goods, vacations, and fine dining.
Perhaps more alarming, the pair acted as straw donors, illegally channeling foreign money into U.S. political campaigns. Twelve foreign nationals paid $93,000 each to attend a 2017 fundraiser hosted by the then-president. Li and Wang used a portion of that money — around $600,000 — to secure prime access and take photos with the president, later leveraging those images to solicit more TEC investments.
Prosecutors condemned the scheme as an assault on American democracy. “Li deceived over 150 victims while trying to profit by selling access to our political system,” said U.S. Attorney Joseph Nocella Jr. “This is a direct threat to the integrity of U.S. elections and immigration.”
This case highlights an urgent national security concern: Chinese-linked financial operations exploiting America’s open systems — from immigration to politics — for personal and potentially geopolitical gain. As Chinese influence tactics evolve, the U.S. must remain vigilant to safeguard its democratic institutions from foreign manipulation.
