Korean-American Affinity Scheme Raised $2.7 Million, SEC Says

A Washington state resident targeted elderly members of the area’s Korean-American community including her own relatives in a $2.7 million fraudulent scheme, the SEC says.

Jenni Yoon Jeong Lee used the incoming money to support her gambling habit and to cover personal expenses, as well as to make Ponzi-like payments to existing clients, according to the Securities and Exchange Commission. The commission filed its complaint Wednesday in the US District Court for the Western District of Washington.

Lee held herself out as an investment adviser working with legitimate companies, but steered investments to sham ...