A woman from Federal Way, Washington, has been indicted on charges of wire and bank fraud related to a fraudulent investment scheme. Jenni Yoon Jeong Lee, 52, is accused of defrauding elderly members of the Korean community by posing as an investment advisor. Acting U.S. Attorney Teal Luthy Miller announced that Lee allegedly diverted over $3 million from at least 28 victims for personal use.
"Ms. Lee held herself out as an experienced investment advisor offering her victims a guaranteed return on the funds they placed with her," stated Acting U.S. Attorney Miller. "However, the indictment notes that none of the money was invested and in fact, nearly $1 million of investor funds were accessed and spent at area casinos."
The indictment claims that Lee created business entities that appeared to be financial investment companies and controlled their bank accounts. She reportedly convinced victims to invest by promising high returns with no risk, sometimes up to 10%. Victims were persuaded to write checks or fund self-directed IRAs managed by Lee.
In total, Lee allegedly collected over $3 million, returning some funds to investors but leaving a net loss of approximately $2.2 million. Over $900,000 was reportedly spent at casinos.
The indictment includes three counts of wire fraud related to transfers from IRA accounts and two counts of bank fraud for depositing client checks into shell company accounts. These acts are representative of the alleged scheme.
If convicted, Lee faces up to 30 years in prison for these charges.
It is important to note that these charges are allegations and that individuals are presumed innocent until proven guilty in court.
The FBI is investigating this case with prosecution led by Assistant United States Attorney Sean H. Waite.