On August 8, 2024, a federal grand jury in Knoxville, Tennessee, returned a 14-count indictment against Kenneth Francis Lee, 53, and Susan Amie Lee, 54, both residents of Knoxville. Kenneth Lee faces seven counts of wire fraud, one count of money laundering, and three counts of tax offenses, while Susan Lee is indicted on three counts of money laundering offenses.
Kenneth and Susan Lee appeared in court before United States Magistrate Judge Debra C. Poplin and entered pleas of not guilty. Their trial is scheduled for October 22, 2024, before United States District Court Judge Thomas A. Varlan.
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The indictment alleges that from March 2019 through August 8, 2024, Kenneth Lee orchestrated a scheme to defraud investors by falsely claiming he was in litigation to sell a company to a large U.S.-based investment firm. Victims wired funds to Kenneth Lee for purported legal fees, with the promise of receiving a percentage of the sale proceeds. However, the indictment claims there was no settlement and that Lee used the funds for personal expenses, including gambling. It is further alleged that Kenneth Lee did not report this income to the Internal Revenue Service (IRS). Susan Lee is accused of assisting in collecting and spending the fraud proceeds.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee, IRS Supervisory Special Agent Meredith Louden, and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico announced the indictment.
If convicted, Kenneth Lee faces a maximum of 20 years in prison for the fraud and money laundering offenses, along with fines, restitution, forfeiture, and a five-year term of supervised release. He also faces a maximum of five years imprisonment for the tax offenses. Susan Lee faces a maximum of 20 years in prison, fines or twice the amount involved in the money laundering transactions, forfeiture, and a three-year term of supervised release.
The indictment follows an investigation by the IRS and FBI in Knoxville. Assistant U.S. Attorney Anne-Marie Svolto will represent the United States in this case.
Members of the public are reminded that an indictment constitutes charges only and that every person is presumed innocent until proven guilty beyond a reasonable doubt.
Source: Read Original Release
Tennessee AG Alerts on Scam Threats
The Tennessee Attorney General’s Office has issued a warning about two common scams where individuals impersonate government officials to extort money or personal information. The scams involve threats related to missed jury duty or illegal items intercepted by Customs & Border Patrol. Consumers are advised to avoid making payments or sharing personal information and to report these scams to the appropriate authorities.