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Knoxville Couple Embroiled in $Multi-Million Dollar Wire Fraud Scheme
A 14-count indictment was unsealed against Kenneth Francis Lee, 53, and his wife Susan Amie Lee, 54, of Knoxville, Tennessee, on charges of wire fraud, money laundering, and tax offenses in a federal court in Knoxville.
According to the indictment, Kenneth Lee allegedly defrauded investors by claiming he was in litigation to sell a company to a large U.S. based investment firm. The victims wired funds to Lee for ‘legal fees’ to help procure the settlement funds, but Lee used the funds for personal expenses, including funding his gambling habit. He also failed to report the income to the Internal Revenue Service (IRS).
Susan Lee allegedly assisted in collecting the fraud proceeds into accounts in her name and then spending those funds. The indictment alleges that the scheme ran from March 2019 through August 8, 2024.
Kenneth Lee faces a maximum of 20 years in prison, a fine, restitution, forfeiture, and a maximum five-year term of supervised release for the fraud and money laundering offenses. Susan Lee faces a maximum of 20 years in prison, a fine, or twice the amount involved in the money laundering transactions, forfeiture, and a maximum term of supervised release of three years.
The indictment is the result of an investigation by IRS Knoxville and FBI Knoxville. Assistant U.S. Attorney Anne-Marie Svolto will represent the United States in the case.
Kenneth and Susan Lee appeared in court before the Honorable Judge Debra C. Poplin, United States Magistrate Judge, and entered pleas of not guilty to the charges in the indictment. Trial has been set for October 22, 2024, before the Honorable Judge Thomas A. Varlan, United States District Court Judge in United States District Court, in Knoxville, Tennessee.
The public is reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Key Facts
- State: Tennessee
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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