(CNN) Two people have been accused of running a years-long scheme that took at least $ 27 million from foreign investors, involving false promises for green cards in exchange for investments, financing a fake school and promising access to politicians prominent Americans. including former President Donald Trump, in exchange for money that was allegedly used in a straw donor scheme.
Sherry Li and Lianbo “Mike” Wang were arrested Monday and charged with conspiracy to commit wire fraud, money laundering conspiracy and conspiracy to defraud the United States by obstructing the administration of the Federal Electoral Commission’s financial laws. the campaign in a complaint that was unveiled on Monday. CNN contacted Li and Wang’s lawyers for comment.
Prosecutors say Li, from his Long Island home starting in 2013, devised a scheme to trick investors into convincing them to invest in a fake plan to build a private school. Wang allegedly served as general manager of the fictional Thompson Education Center, the complaint, and Li and Wang allegedly siphoned off proceeds for their personal use, including housing, vacations, clothing, jewelry and political contributions to prominent politicians.
Prosecutors said Li and Wang acted as straw donors for foreigners to illegally give campaign contributions to support U.S. politicians and political committees, including Trump, and that the couple used photos they had. caught up with Trump and former First Lady Melania Trump to ask investors to contribute. to his project.
CNN contacted representatives of Trump and the Republican National Committee for comments.
“As alleged, the defendants incited their victims to invest in a fraudulent scheme aided by deception claiming that their fictitious project had the support of prominent politicians,” U.S. Attorney Breon Peace said in a statement .
“Defendants may have perpetrated this fraud by selling after access to U.S. politicians by illegally contributing foreign money to political campaigns in their own name and bringing foreigners as their guests to fundraising events,” he said. added Peace.
Prosecutors allege that Li and Wang, who are both U.S. citizens, brought foreigners to raise funds for U.S. politicians in exchange for payments from foreigners that were used by Li and Wang to make political contributions under their own names, despite receiving several warnings that foreigners are prohibited from making political contributions.
Prosecutors say Li and Wang attended a June 28, 2017, political event that raised money for a joint fundraising committee at the Trump International Hotel in DC, where they posed for photos with Donald and Melania Trump. , and also the 12 Chinese and Singaporean citizens that Li and Wang arranged to attend the event.
The complaint does not cite the joint fundraising committee, but CNN reported earlier that the funds raised at the event will help fund two joint fundraising committees with the Republican National Committee: the Trump Victory Fund and the Make Committee. American Great Again.
Seven of the foreigners who attended the event were staying in the same Washington, DC hotel as Wang and Li, and their bill was more than $ 31,000, which prosecutors say was paid for by funds. the Thompson Education Center project raised by hopeful foreign investors. to seek residency in the United States.
Prosecutors say the bank accounts controlled by Li and the Thompson Education Center received large transfers of foreign funds that Li and Wang used to fund large political contributions that were needed to assist in fundraising.
According to the complaint, FEC records show that the joint fundraising committee received a $ 270,500 contribution on behalf of Li and that “financial records reflect that this verification was funded by several threads for a total of hundreds of thousands of dollars. received from the accounts of Hong Kong-based banks “. A review of FEC donor data from June 2017 shows a $ 270,500 contribution to Trump Victory PAC, among other contributions.
The complaint also says that the joint fundraising committee received a $ 329,500 check shortly before the event from Wang that “it was financed by the same wires from Hong Kong-based bank accounts” that funded the check. of Li. FEC donor data show a $ 329,500 contribution from Wang to Trump’s Victory PAC made in June 2017, among others.
Prosecutors also allege that Wang made a 2016 contribution to an unnamed congressional candidate. CNN confirmed FEC records show a $ 1,350 contribution made on Wang’s behalf to a New York Congress campaign in January 2016. Prosecutors allege that both Li and Wang received separate donation requests from the congressional candidate. which indicated that contributions “are limited to U.S. citizens and greencard holders.” among other needs. It is unclear whether prosecutors say the donation to the congressional candidate was funded with money from foreign nationals.
As part of the scheme, Li and Wang allegedly sought donations from foreigners falsely promising that they would have legal permanent resident status as part of an investor program, prosecutors said.
The EB-5 visa program allows foreign investors making at least $ 500,000 in investments in specific parameters, which include stimulating the economy in rural or high-unemployment areas and job creation for American workers, to apply for the U.S. Citizenship and Immigration Services for a legal condition. permanent resident status, complaint. But projects seeking EB-5 investors are prohibited from guaranteeing that investors will be granted legal permanent resident status.
The complaint says the couple has raised at least $ 27 million from more than 150 investors as part of the scheme, and $ 16.5 million has been raised by EB-5 investors who have promised a green card in exchange. of their investment ”. Prosecutors say to date, no EB-5 investor has received a temporary or permanent green card, and instead, USCIS has denied several temporary green card requests because it did not find the Thompson Education Center’s business plan credible.
Li and Wang allegedly planned to build a cultural theme park in 2011, which they say would be a “Chinese Disneyland” in upstate New York. He told investors that the project will create 3,000 jobs.
The couple is also accused of offering to sell shares in commercial entities created by Li intended to raise funds for the education center, and have allegedly made false statements about the progress of the share price for one of their companies on the New York Stock Exchange. .
Prosecutors have asked in a letter to the court that Li and Wang be released on bail only if they present a bail package with “substantial and significant assets,” surrender passports, fully disclose financial assets and participation and adhere to strict limitations of their movements, calling. both “significant flight risks.”
