New York Woman Sentenced to 9 Years in Prison for Fraud Scheme

Sherry Xue Li duped investors and funneled money to a Trump fundraiser

Published on Feb. 28, 2026

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A New York businesswoman was sentenced to 9 years in federal prison for a financial scheme that defrauded over $30 million from foreign investors and illegally 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 issue of financial fraud schemes targeting vulnerable investors, as well as the problem of illegal campaign contributions undermining the integrity of the political process. It also raises questions about the vetting of political fundraising events and the responsibility of campaigns to ensure the legitimacy of their donors.

The details

Sherry Xue Li, a 54-year-old resident of Oyster Bay, New York, pleaded guilty last year to money laundering conspiracy and conspiracy to defraud the U.S. by obstructing the Federal Election Commission's administration of campaign finance laws. Li and her co-defendant, Lianbo Wang, convinced investors, many from China, to contribute $500,000 each to a fictitious development project with the false promise of securing them U.S. permanent residency. Instead, Li and Wang used the money for personal expenses and to make illegal contributions to U.S. political campaigns, including $600,000 to a committee hosting a 2017 Trump fundraiser that Li attended and used to solicit more donations.

  • Li was arrested in 2022.
  • Li and Wang pleaded guilty last year.
  • Li was sentenced on February 28, 2026.

The players

Sherry Xue Li

A 54-year-old New York businesswoman who was sentenced to 9 years in federal prison for a financial fraud scheme.

Lianbo Wang

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

Donald Trump

The former U.S. president whose 2017 fundraiser received $600,000 in illegal donations from Li and Wang.

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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 will determine whether Li will be allowed to remain free on bail pending her appeal.

The takeaway

This case highlights the ongoing problem of financial fraud schemes targeting vulnerable investors, as well as the issue of illegal campaign contributions undermining the integrity of the political process. It underscores the need for stronger oversight and accountability measures to protect investors and the democratic system.