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Long Island residents Sherry Xue Li, age 50, and Lianbo Wang, age 45, both of Oyster Bay, were arrested Monday, July 18, on multiple charges tied to a decade-long scheme that netted $27 million, according to a criminal complaint filed in US District Court in Brooklyn.
Federal prosecutors said Li and Wang convinced more than 150 victims to fork over money for the development, construction, and operation of the made-up school in Sullivan County, dubbed the Thompson Education Center (TEC).
The pair made the project appear legitimate by sending would-be victims promotional materials that featured pictures of Li, the TEC project’s president, with prominent US politicians, including then-President Donald Trump, prosecutors said.
Li and Wang furthered their scheme by promising their victims access to political events and politicians for a fee, and then used that money to illegally make campaign donations in their own names, according to prosecutors.
The pair allegedly charged 12 foreign nationals $93,000 per person to get into a fundraising event for President Trump in June 2017. They then used the money to illegally make $600,000 in political contributions in their own name before taking photographs with their victims and Trump, prosecutors said.
The photos were later used to entice more investors for the TEC project.
Li and Wang also persuaded many victims to invest by guaranteeing them permanent residence in the United States through the EB-5 investment visa program, according to prosecutors.
The pair allegedly spent their fraudulently-obtained money on personal expenses that included clothing, jewelry, vacation travel, and upscale dining.
Some of the funds allegedly went toward hiring contractors, engineers, and other professionals to create architectural drawings and plans, and to perform minor work on the TEC project to make potential investors believe the project was moving forward.
“Tens of millions of dollars came in from investors and straw donors, who expected their money would bear fruit,” said US Attorney Breon Peace. “However, only one promise came to fruition, the access to political power. Foreign money pollutes our immigration and democratic processes, and we must do all we can to protect them."
Li and Wang were both charged with wire fraud conspiracy, money laundering conspiracy, and conspiracy to defraud the United States by obstructing the Federal Election Commission’s administration of campaign finance law.
They were due to appear in federal court in Brooklyn Monday afternoon, July 18.
The FBI has established a hotline for potential victims in the case. Anyone with information is asked to call 1-800-CALL-FBI or submit tips on the agency's website.
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