Jenni Yoon Jeon Lee, 52, of Federal Way, Washington, was indicted on March 21 by a federal grand jury on charges of wire fraud and bank fraud in connection with an alleged Ponzi scheme targeting elderly members of the Korean community.
The indictment accuses Lee of falsely portraying herself as an experienced investment advisor and promising guaranteed returns to investors. Instead of investing the funds, Lee allegedly used more than $3 million from at least 28 people for personal expenses.
Lee reportedly set up several shell companies with names suggesting they were legitimate investment firms, and controlled their bank accounts. She convinced victims, primarily from the Korean community, to invest by offering high returns with no risk.
Authorities believe the scheme was a classic Ponzi operation, where funds from newer investors were used to pay earlier investors.
If convicted, Lee faces up to 30 years in prison for each charge.