Federal Way, Washington – A 53-year-old Federal Way woman, Jenni Yoon Jeong Lee, pleaded guilty today to multiple fraud charges for operating a phony investment scheme that defrauded at least 28 members of the Korean community out of over $3 million.
Lee admitted to falsely presenting herself as an investment advisor, creating shell companies with names suggesting they were legitimate financial firms. She promised victims, many of whom were elderly and relying on the funds for retirement, guaranteed safe returns of up to 10% with no risk.
Instead of investing the money, Lee diverted funds into accounts she controlled, using them for personal expenses, including at least $900,000 spent at casinos due to a gambling addiction. While some money was repaid in a Ponzi-style scheme, the actual loss to victims exceeds $1.5 million.
Lee pleaded guilty to three counts of wire fraud and two counts of bank fraud. U.S. District Judge Ricardo S. Martinez has scheduled her sentencing for September 18, 2026. The charges, investigated by the FBI, carry a potential sentence of up to 30 years in prison.