On Tuesday, a New York woman admitted to committing fraud against a billionaire, attempting to extort over 12 billion dollars from him.
Court records show that Chinese-born entrepreneur Luo Changli (transliterated as Changli “Sophia” Luo) admitted on Tuesday in a hearing at the Manhattan federal court that she was guilty of telecommunications fraud. She confessed to lying to the billionaire, falsely claiming to have recorded intimate moments between them at her home. The 46-year-old Luo told the judge that she used the so-called “recordings” as leverage, trying to obtain money from the billionaire (referred to as “Victim-1” in court documents).
Luo was charged last year with luring men into intimate relationships, stealing their identities, making unauthorized purchases, or pressuring them to fund her luxurious lifestyle.
Although the court documents did not disclose the identity of the victims in Luo’s case, a source confirmed to Bloomberg that Wes Edens, co-founder of Fortress Investment Group and co-owner of the Milwaukee Bucks, was involved in the case.
In May, The Wall Street Journal reported that Edens, who is 64 years old, was identified as “Victim-1” in the extortion scheme. A spokesperson for Edens confirmed that he was referred to as “Victim-1” in the legal documents.
The spokesperson stated that Edens, out of concern for his and his family’s safety, voluntarily contacted law enforcement. Edens will not comment on the case as the charges against the defendant are clearly stated in the indictment. Mr. Edens plans to testify at the upcoming trial.
In June, prosecutors filed a new indictment, accusing Luo of using sexual relationships to swindle money from two other victims.
She admitted to all charges involving these three men in court.
During the plea hearing, she expressed regret for her actions, saying, “I deeply regret what I have done. I know my behavior was wrong, and I am willing to take responsibility for it.”
The guilty plea resolved six other criminal charges Luo faced, including attempting to extort over 12 billion dollars from Edens and stealing credit card information from two other romantic partners. As part of the plea agreement, she agreed to pay a $2 million fine.
The court is scheduled to sentence her on February 26 next year. While the final sentence will be determined by the judge, prosecutors and defense lawyers agree that a three to four-year imprisonment is appropriate.
Defense lawyer Arthur Aidala stated that after thorough discussions with family and friends, Luo believed that taking responsibility for her actions was in the best interest of all parties. Edens’ spokesperson and the Manhattan federal prosecutor’s office declined to comment to The Wall Street Journal.
In 2025, federal agents arrested Luo at John F. Kennedy International Airport as she was trying to board a flight to China.
Luo, who is divorced, previously founded a nonprofit organization in Manhattan that claimed to produce video interviews with economists and environmental activists.
Prosecutors claimed that Luo had a date in Manhattan with a second victim, during which she proposed a sexual relationship in exchange for the victim purchasing a $2,000 Apple computer for her. After engaging in a sexual relationship, Luo secretly captured the victim’s credit card information and later spent $4,500 using that information on the Apple website.
Prosecutors stated that Luo established contact with a third victim when seeking donations for the nonprofit organization through “cold calling” (unsolicited telephone solicitations).
The case, known as “US v. Luo,” has the docket number 25-cr-412 and is being heard at the United States District Court for the Southern District of New York.