A Federal Way, Washington woman has been indicted on charges of wire and bank fraud. Acting U.S. Attorney Teal Luthy Miller announced that Jenni Yoon Jeong Lee, 52, allegedly misrepresented herself as an investment advisor to elderly members of the Korean community. According to the indictment, she used funds from at least 28 victims for personal expenses rather than investing them as promised.
“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. The indictment further reveals that nearly $1 million of investor funds were spent at casinos.
Lee reportedly established various shell companies with names suggesting they were legitimate financial investment firms and opened accounts under these entities. She assured investors their principal was secure and promised returns up to 10%.
Victims were persuaded to write checks to these shell companies or fund self-directed IRAs managed by Lee. In some cases, she provided promissory notes to give the appearance of loans to her companies, thus gaining control over the funds.
The total amount taken in by Lee is estimated at over $3 million, with about $2.2 million being the net loss after partial repayments to investors. Of this amount, more than $900,000 was allegedly spent at casinos.
Lee faces three counts of wire fraud related to transfers from IRA accounts and two counts of bank fraud involving client checks deposited into shell company accounts. Each charge carries a potential penalty of up to 30 years in prison.
It is important to note that these charges are allegations and Lee is presumed innocent until proven guilty in court.
The FBI is conducting the investigation while Assistant United States Attorney Sean H. Waite is prosecuting the case.
