March 2, 2026
An Oyster Bay woman got 9 years in prison for a $30M fraud scheme that funneled stolen cash to U.S. political campaigns, including a Trump fundraiser. The case exposes risks of foreign money in local elections.
An **Oyster Bay** woman was sentenced to nine years in federal prison Friday for a massive $30 million fraud that defrauded over 150 investors and illegally funneled money into U.S. political campaigns, including a Donald Trump fundraiser in **Central Islip**.[5][1]
Sherry Xue Li, 54, of **Oyster Bay**, pleaded guilty last year in federal court to money laundering conspiracy and defrauding the U.S. by obstructing Federal Election Commission rules. She must forfeit $31.5 million and property at three locations, plus pay full restitution to victims.[5][4]
Prosecutors say Li and co-defendant **Lianbo Wang**, also from **Oyster Bay**, promised Chinese investors $500,000 each for a fake development project guaranteeing U.S. green cards. Instead, they spent millions on luxury clothes, jewelry, upscale dining, vacations, and housing. Wang got 60 months in 2024; Li's recent sentencing caps the case.[1][3][5]
Li sold access to U.S. politicians at fundraisers, using stolen foreign funds for illegal campaign contributions. She posed for a photo with Trump and Melania, then used it to lure more victims. No charges against campaigns, but U.S. Attorney **Joseph Nocella** slammed the attack on fair elections.[1][5]
This fraud hits amid prior **Oyster Bay** controversies. In 2023, Democrats pushed a bill for oversight of town contracts after claims **Inspector General Brian Noone** tried awarding a $2 million cybersecurity deal to a business partner. Assemblyman **Chuck Lavine** called for an attorney general probe; **Supervisor Joe Saladino** had no comment.[2]
These cases spotlight transparency needs in Nassau County government. **Town of Oyster Bay** returned $10.4 million to taxpayers via budget savings, but scandals erode trust.[7]
Stay informed on **Oyster Bay** politics—explore more LI Daily stories on local government accountability today.
