A woman in Washington State has pleaded guilty to wire and bank fraud in a scheme that duped victims of millions of dollars.
According to the US Department of Justice (DOJ), the case involves a bogus investment advisor who targeted the Korean population, including many elderly people.
Jenni Yoon Jeong Lee, 53, of Federal Way scammed at least 28 people out of more than $3 million by acting as an investment advisor and promising secure returns of up to 10% with no risk.
She pleaded guilty to three charges of wire fraud and two counts of bank fraud in U.S. District Court in Seattle.
Lee set up dummy companies, opened bank accounts in their names, and spent victim payments on personal needs and her gambling addiction.
According to the DOJ,
“Lee got the victims to write checks to one of the shell companies for ‘investment,’ or she induced the client to fund a self-directed IRA at a legitimate financial services company and to then give Lee access to manage the account. Lee would sometimes provide the financial services company with a promissory note to make it appear the client was loaning money to one of Lee’s shell companies. In this way she gained control of the investor funds.”
She spent at least $900,000 at casinos, and some of it was refunded in a Ponzi-like fashion, resulting in actual losses of more than $1.5 million.
She is facing up to 30 years in prison. Sentencing is planned for September 18th.
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