Campaign Finance and Corruption

A federal judge in Central Islip, New York, sentenced Oyster Bay businesswoman Sherry Xue Li, 54, to nine years in prison for a years‑long scheme that defrauded mostly Chinese investors of more than $30 million and funneled hundreds of thousands of dollars into U.S. political campaigns, including a 2017 fundraiser for President Donald Trump. Li, a naturalized U.S. citizen, pleaded guilty in 2025 to money‑laundering conspiracy and conspiracy to defraud the United States by obstructing the Federal Election Commission’s enforcement of campaign‑finance laws, and was ordered to forfeit $31.5 million, three properties and pay restitution. Prosecutors said Li and co‑defendant Lianbo Wang, who received a five‑year sentence, falsely promised foreign investors that $500,000 stakes in a fictitious development project would secure them U.S. green cards, then diverted millions to luxury personal spending on clothing, jewelry, housing, travel and upscale dining. They also sold access to American politicians, charging some investors $93,000 apiece for admission to a Trump fundraiser and using that money to make $600,000 in illegal contributions in their own names to the host committee, later brandishing a photo of Li with Donald and Melania Trump to lure more victims. Prosecutors emphasize that the campaigns and committees involved have not been accused of wrongdoing and were unaware the donations were financed with stolen funds, but the case highlights vulnerabilities in the EB‑5‑style investment and campaign‑finance systems that can be exploited to move foreign money into U.S. politics.