In a federal court in New York’s Eastern District on July 30th, Sherry Li, a Long Island businesswoman and the main suspect in a large-scale fraud case, pleaded guilty after a year since the project manager of “America China City,” Lianbo Wang, was sentenced to 60 months in prison in July last year. Li and Wang were involved in a scheme that spanned nearly a decade, defrauding over 30 million dollars in investment funds from more than 170 Chinese investors.
The duo first caught public attention in 2013 when Li claimed plans to construct a $6 billion China-themed amusement park called “China City of America” in Sullivan County, New York (about 100 miles northwest of New York City), surpassing the scale of New York and San Francisco’s Chinatowns. The project, spanning 600 acres in the Town of Thompson near the Catskill Mountains, was to include a Chinese-themed park, luxury residential communities, a university accommodating 1,000 students, and dormitory facilities, with offices for each Chinese province within the park.
When local government officials informed Li that the “Chinese-style Disneyland” project faced approval challenges, she and Wang rebranded it as a private university campus called “Thompson Education Center (TEC)” and used images of Li posing with American political figures as promotional material, asserting governmental support to further lure Chinese investors. Li served as TEC’s president, while Wang held positions as marketing director and general manager.
According to court documents, Li and Wang marketed the TEC project to Chinese investors, promising green cards through the U.S. EB–5 immigrant investor program with a $500,000 investment, along with assurances of an initial public offering (IPO) guaranteeing high returns to other investors.
To create an appearance of progress in the project, they hired engineers and contractors to draft building blueprints, conducted symbolic construction at the selected site, and showcased photos with U.S. political figures to potential investors, falsely implying official endorsements.
In reality, most of the investment funds were used for personal expenses by Li and Wang, such as luxury goods, vacations, dining, and political donations, with minimal spending for the project itself.
By the time of the case, over 150 investors had collectively contributed at least $31.5 million, with $16.5 million from EB-5 immigrant investment and $15 million from stock investors. However, none of the EB-5 investors obtained temporary or permanent green cards, and the TEC project never went public.
To promote this fraudulent scheme, Li and Wang devised a mechanism of “fake donors” to assist Chinese citizens in bypassing U.S. election regulations by making donations to American political figures. They claimed to arrange participation in political activities and photo opportunities with U.S. officials for Chinese guests, contingent upon hefty fees. In reality, they used their own names or those of American agents to make donations, violating the Federal Election Campaign Act (FECA) and Federal Election Commission (FEC) regulations.
One of the most controversial donation activities occurred on June 28, 2017, during a fundraising dinner hosted by the then-U.S. president. Li and Wang charged 12 Chinese investors $93,000 each as “admission fees” for a chance to take photos with the president. They then donated $600,000 using Li ($270,500) and Wang ($329,500) as individual donors, making them the largest contributors at the event.
These photos later became part of TEC’s promotional material to market the project to more potential investors.
Li and Wang were arrested on Long Island on July 18, 2022. After a three-year investigation and trial, Li finally admitted to money laundering and conspiracy to obstruct the Federal Election Commission (FEC) in enforcing campaign finance regulations, as well as defrauding the U.S. government. If convicted, the 53-year-old Li could face up to 20 years in prison. Under the plea agreement, she agreed to forfeit $31.5 million in cash and three properties. She is set to be sentenced on December 5.
The 48-year-old Wang pleaded guilty in 2024 and received a 60-month prison sentence for charges including illegal currency transactions and conspiracy to defraud the U.S. government.
Federal prosecutor Nocella of the Eastern District of New York stated, “Li deceived over 150 victims with lies and attempted to commodify the American electoral system. This not only violates the law but also undermines the fundamental tenets of American democracy – a fair, transparent election environment free from foreign influence.”
Ricky J. Patel, director of the New York office of Homeland Security Investigations (HSI), emphasized, “Transnational fraud schemes like these not only harm the financial system but also use creative deception on unsuspecting victims. We will expose all disguises and prevent the misdeeds from succeeding.”
Harry T. Chavis, special agent in charge of the Criminal Investigation division of the Internal Revenue Service (IRS-CI), noted, “These victims believed they were investing in the ticket to the American dream but instead walked into a meticulously crafted fraud nightmare. Li is now beginning to face the consequences.”