SEC’s Default Motion Granted in Korean-American Affinity Scheme

The US Securities and Exchange Commission’s motion for default got approval Thursday in a suit against a Washington resident who allegedly ran a $2.7 million scheme targeting elderly members of the Asian-American community.

Defendant Jenni Yoon Jeong Lee had “failed to timely plead or otherwise defend in this action,” said Deputy Clerk of Court, Ravi Subramanian, in a signed order for the US District Court for the Western District of Washington. The SEC claimed Lee—who allegedly targeted Korean-Americans, including her own relatives—had assumed a false identity as an investment adviser working with legitimate companies, but instead put the money towards companies she controlled, according to its March complaint.

• Lee allegedly also put the money towards her gambling habits and to cover personal expenses, as well as to make Ponzi-like payments to existing clients—repaying investors about $700,000, the complaint said
• A federal grand jury in March previously indicted Lee on bank and wire fraud charges in connection with the alleged scheme; she pleaded not guilty at her March 21 arraignment in the Western District of Washington
• The SEC has brought more than 30 cases alleging affinity fraud since 2022, with a Miami initiative being credited in several of them and inspiring similar efforts in other parts of the country
  

The SEC represents itself. An attorney from the Office of the Federal Public Defender for the Western District of Washington represents Lee.

The case is Securities and Exchange Commission v. Lee et al, W.D. Wash., No. 2:25-cv-00793, 6/25/25.