New York woman sentenced to 9 years for duping investors, funneling money to Trump fundraiser

Sherry Xue Li pleaded guilty to money laundering and campaign finance violations in a $30 million fraud scheme.

Published on Feb. 27, 2026

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A 54-year-old New York businesswoman was sentenced to 9 years in federal prison for running a financial scheme that defrauded over $30 million from foreign investors and funneled some of the stolen money into U.S. political campaigns, including a fundraiser for former President Donald Trump.

Why it matters

This case highlights the ongoing problem of fraud and abuse in the political fundraising system, as well as the vulnerability of foreign investors to financial scams. It also raises questions about the vetting and oversight of political donations and events.

The details

Sherry Xue Li and her co-defendant Lianbo Wang convinced investors, many from China, to contribute $500,000 each to a fictitious development project with a false promise of obtaining U.S. permanent residency. Instead, Li and Wang used the money for personal expenses and to make illegal donations totaling $600,000 to a committee hosting a 2017 Trump fundraiser, where Li even took a photo with the former president and his wife.

  • Li was arrested in 2022 and has been detained since then.
  • Li and Wang pleaded guilty to the charges last year.
  • Li was sentenced to 9 years in federal prison on February 27, 2026.

The players

Sherry Xue Li

A 54-year-old New York businesswoman who pleaded guilty to money laundering conspiracy and conspiracy to defraud the U.S. by obstructing the Federal Election Commission's administration of campaign finance laws.

Lianbo Wang

Li's co-defendant who also pleaded guilty to similar charges and was sentenced to 5 years in prison.

Donald Trump

The former U.S. president whose 2017 fundraiser was used by Li and Wang to make illegal campaign donations.

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What they’re saying

“She peddled false promises and outright lies to her many investors and stuffed her pockets while they suffered devastating losses.”

— Joseph Nocella, U.S. Attorney

What’s next

The judge in the case will decide on Tuesday whether to allow Sherry Xue Li to remain free on bail pending her appeal.

The takeaway

This case highlights the ongoing need for stronger oversight and accountability in the political fundraising system to prevent fraud and abuse, as well as the importance of protecting vulnerable foreign investors from financial scams.