Korean Investment Fraud: Washington Woman Pleads Guilty After $3 Million Investment Scheme
Korean Investment Fraud has taken another significant turn after a Washington state woman admitted in federal court to defrauding Korean American seniors by promising guaranteed returns and protection of their principal investments.
Federal prosecutors for the Western District of Washington announced on July 2 that 53-year-old Jenni Yoon Jeong Lee pleaded guilty to three counts of wire fraud and two counts of bank fraud in U.S. District Court.
According to prosecutors, Lee created shell companies designed to appear as legitimate investment firms before introducing herself as an investment advisor within the local Korean American community. She allegedly promised investors that their principal would be fully protected while offering returns of up to 10%.
Authorities said Lee collected more than $3 million from at least 28 victims, many of whom were Korean American seniors relying on retirement savings.
How the Korean Investment Fraud Scheme Worked
Prosecutors said Lee persuaded victims to open self-directed Individual Retirement Accounts (IRAs) and transferred control of those accounts to herself. In other cases, she allegedly used promissory notes that falsely portrayed the investments as loans to her shell companies.
Investigators said portions of the money were used to make payments to earlier investors in a Ponzi-style scheme. Prosecutors also alleged that at least $900,000 of investor funds was lost through casino gambling.
In a signed statement, Lee admitted that her gambling addiction led her to use investors’ money for gambling activities.
Sentencing Scheduled for September
Federal prosecutors said each count carries a potential maximum prison sentence of up to 30 years, although the final sentence will be determined by the court after considering the U.S. Sentencing Guidelines and other statutory factors.
Lee’s sentencing hearing is scheduled for September 18.
The case highlights the risks of investment fraud targeting elderly investors, particularly within close-knit immigrant communities where personal trust often plays a significant role in financial decisions. Financial regulators and law enforcement agencies continue to urge investors to independently verify investment professionals and be cautious of promises of guaranteed returns or unusually high profits.
