Changli “Sophia” Luo pleaded guilty Tuesday in Manhattan federal court to a fraud scheme aimed at extorting more than $1.2 billion from three victims, including Wes Edens, co-founder of Fortress Investment Group and co-owner of the Milwaukee Bucks and Aston Villa, according to fortune.com. Luo faces up to 20 years in prison at her sentencing scheduled for February. A trial had been set for November 16 before her plea.
Court documents reviewed by fortune.com detail that Luo initiated contact with Edens, referred to as Victim-1 in filings, via LinkedIn in November 2022 under the pretense of discussing a business opportunity. Prosecutors allege she used this approach to orchestrate the extortion plot. Edens has denied the allegations against him, and his spokesperson declined to comment. Luo’s lawyer did not respond to requests for comment.
The case highlights the risks of targeted fraud schemes involving high-profile individuals and the use of social media platforms like LinkedIn to initiate contact. Wes Edens is a prominent figure in finance and sports, co-owning NBA’s Milwaukee Bucks and Premier League’s Aston Villa. The $1.2 billion figure places this among the largest extortion cases involving private individuals in recent years.
Luo’s guilty plea halts the scheduled trial and sets the stage for sentencing in February. U.S. District Judge Margaret Garnett will oversee the case, where Luo could face up to two decades in prison. The case underscores ongoing federal efforts to combat sophisticated fraud targeting wealthy individuals.