A 52-year-old woman, Jenni Yoon Jeong Lee, of Federal Way, Washington, has been charged with wire fraud and bank fraud after allegedly defrauding at least 28 victims out of more than $3 million. The U.S. Attorney’s Office for the Western District of Washington made the announcement on March 21.
According to the U.S. Attorney’s office, Lee posed as an investment advisor to members of the Korean community, particularly targeting older individuals. She created multiple fake business entities with names that suggested they were legitimate financial investment companies. These shell companies allowed her to open and control bank accounts, through which she falsely represented herself as a financial advisor.
Lee allegedly promised victims safe returns on their investments, with some claims reaching up to 10% returns, while also misleading them into believing their principal investment was fully guaranteed. Using this approach, Lee persuaded her victims to write checks to one of her shell companies or fund self-directed IRA accounts at legitimate financial institutions, all while granting her access to their funds.
Over time, Lee diverted at least $3 million in total, with an estimated net loss of approximately $2.2 million to her victims. Shockingly, more than $900,000 of the money was spent at casinos, according to reports. The fraudulent activity went unnoticed for a while, as Lee skillfully concealed the true nature of the scheme, hiding the trail of funds.
The charges Lee faces carry significant penalties. If convicted, she could be sentenced to up to 30 years in prison, making this a highly serious case of financial fraud.
The U.S. Attorney’s Office has made it clear that they will continue to work tirelessly to identify and prosecute individuals involved in fraudulent schemes that target vulnerable communities, as this case highlights a devastating abuse of trust in the financial advisory industry.
This case also serves as a reminder to be cautious when dealing with unfamiliar investment opportunities, particularly when promises of guaranteed returns are made without transparency or proper regulatory oversight.
