⏱ 2 min read
Jenni Yoon Jeong Lee, a 53-year-old woman from Federal Way, Washington, pleaded guilty to running a phony financial advisor scheme that targeted members of the Korean community. On an unspecified date, Lee held herself out as an investment advisor, promising safe returns and guaranteed principal, but instead used the money for personal expenses, including a gambling addiction. The scheme, which lasted for an unspecified duration, affected at least 28 victims, many of whom were elderly and relying on the funds for retirement. The FBI investigation revealed that Lee defrauded her victims of over $3 million.
Lee created shell companies with names that sounded like legitimate financial investment companies, and opened bank accounts to control the flow of money. She would promise her victims high returns, sometimes as high as 10%, and claim that their principal was fully guaranteed. Lee would then use the money for her own expenses, or pay back some of the investors in a Ponzi scheme style, making it seem like the investments were legitimate.
The FBI investigation found that Lee’s scheme was elaborate, with fake business entities and bank accounts. She would often provide promissory notes to make it seem like the investors were loaning money to her shell companies. The victims, trusting Lee and her false promises, would write checks or fund self-directed IRAs, giving Lee control of their money.
Lee’s guilty plea is a victory for the victims and their families, who were affected by her actions. U.S. District Judge Ricardo S. Martinez has scheduled sentencing for September 18, 2026. The case serves as a reminder to be cautious when investing and to thoroughly research any financial advisor or company before handing over money.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Bank Fraud
- Location: WA
- Source: DOJ Press Release
