Washington State Department of Financial Institutions · WA
Federal Way woman pleads guilty to wire and bank fraud resulting in more than $3 million stolen to fund personal expenses - not investments
July 20, 2026
Summary
The Washington State DFI reported that Jenni Yoon Jeong Lee pleaded guilty to wire and bank fraud for misappropriating over $3 million from 28 investors through unregistered securities, shell companies, and Ponzi-style payments. DFI's Final Order imposes a cease-and-desist, $50,000 in fines, and $30,000 in investigative costs. This enforcement action underscores the risks of unregistered securities activity and investor fraud.
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The Washington State Department of Financial Institutions (DFI) has issued a regulatory update regarding Washington resident Jenni Yoon Jeong Lee and her company, Puget Sound Financial, LLC. Lee, who resided in Federal Way, pleaded guilty on July 2, 2026, in federal court to three counts of wire fraud and two counts of bank fraud. In a parallel state action, DFI’s Division of Securities entered a Final Order in November 2025 against Lee for violations of the Securities Act of Washington.
“DFI is committed to stopping people who actively defraud Washington investors,” DFI Director Charles Clark said. “DFI is pleased that the subject of our examination and investigation will be sentenced and prevented from further victimizing Washington residents.”
Records revealed that Lee ran a multi-million dollar scheme that defrauded at least 28 investors, primarily elderly Korean American residents in the South Puget Sound region. Posing as a legitimate investment adviser, Lee misdirected more than $3 million into shell companies to fund personal expenses, casino gambling, and Ponzi-style payouts. She also deceptively accessed clients’ retirement accounts to purchase high-risk, unsecured promissory notes issued by her own sham entities.
Separately, DFI's Final Order determined that Lee and her company sold unregistered securities, acted as an unregistered broker-dealer, and misled investors. The order requires Lee to cease and desist from future violations, and imposes $50,000 in fines plus $30,000 in investigative costs.
“DFI’s investigation into this matter began with a complaint from an investor,” DFI Director of Securities Faith Anderson said. “We encourage people to file complaints if they suspect illegal activity – those complaints can help us focus our investigations into specific areas of a company’s business that may be causing financial harm to Washingtonians.”
Lee faces up to 30 years in prison at her federal sentencing, scheduled for Sept. 18, 2026.
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Common questions
- What does "Federal Way woman pleads guilty to wire and bank fraud resulting in more than $3 million stolen to fund personal expenses - not investments" cover?
- The Washington State DFI reported that Jenni Yoon Jeong Lee pleaded guilty to wire and bank fraud for misappropriating over $3 million from 28 investors…
- Which agency issued this update?
- This update was issued by Washington State Department of Financial Institutions.
- When was it published?
- It was published on July 20, 2026.