Falsely held herself out as an investment advisor and used victim funds to gamble at casinos and other personal expenses
Seattle – A 53-year-old Federal Way, Washington, woman pleaded guilty today in U.S. District Court in Seattle to three counts of wire fraud and two counts of bank fraud in connection with her phony financial advisor scheme, announced First Assistant U.S. Attorney Charles Neil Floyd. Jenni Yoon Jeong Lee held herself out to members of the Korean community as an investment advisor. In reality, the investments went into accounts controlled by Lee and were used for her personal expenses. In her statement of facts Lee states that she had a gambling addiction and used other people’s money for gambling. The FBI investigation revealed she defrauded at least 28 victims of over $3 million. Many of her victims are elderly and were relying on the funds for retirement. U.S. District Judge Ricardo S. Martinez scheduled sentencing for September 18, 2026.
According to records filed in the case, Lee created various business entities with names that made it seem they were financial investment companies. Lee opened and controlled bank accounts for these shell companies.
Lee held herself out as a financial advisor employed at the shell companies. She claimed both orally and in writing that she would place victim investments in funds that would guarantee a safe return, sometimes as high as 10%. She often represented that the principal was fully guaranteed so there was no risk associated with the investment.
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.
In all Lee took in at least $3 million. Some money was paid back to investors in the style of a Ponzi scheme, making the actual loss amount above $1.5 million. Of that, at least $900,000 was spent at casinos.
The three counts of wire fraud are for specific transfers of funds from self-directed IRA accounts. The two counts of bank fraud are for depositing client checks into one of the shell corporation accounts. These counts are representative acts of the alleged scheme.
The charges are punishable by up to 30 years in prison.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean H. Waite
Contact
Press contact for the U.S. Attorney’s Office is Communications Director Emily Langlie at (206) 553-4110or Emily.Langlie@usdoj.gov.
