Changli “Sophia” Luo pleaded guilty to fraud in a scheme to extort Fortress Investment Group co-founder Wes Edens for over $1.2 billion by threatening to release intimate videos. Luo entered her plea before US District Judge Margaret Garnett in Manhattan, admitting to all charged conduct and expressing regret. She faces up to 20 years in prison at sentencing in February.
Prosecutors allege Luo lured men into relationships to steal identities and fund a luxurious lifestyle, though Edens was the only victim named in the case. Luo and Edens met on LinkedIn in November 2022, with an encounter in June 2023. In 2024, she accused him of misleading her into intercourse while mentally incapacitated and threatened media exposure unless he apologized.
After mediation where Edens agreed to pay several million dollars, Luo demanded $1.215 billion or she would report alleged crimes to government offices linked to his businesses. She later lowered her demand to $50 million but threatened to “destroy” Edens if he didn’t accept responsibility. Luo founded One World Imitative, a climate-focused nonprofit, per a 2021 Forbes article.
Edens, a Fortress co-founder, later created New Fortress Energy and backed Brightline Holdings, which filed for bankruptcy last month. He holds stakes in the Milwaukee Bucks, Aston Villa, and a tequila brand with Michael Jordan. The case is US v Luo, 25-cr-412, in the Southern District of New York.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing