Knoxville Couple Indicted in Money Laundering and Fraud Scheme

Knoxville Couple Indicted in Money Laundering and Fraud Scheme

Knoxville, Tennessee — A couple from Knoxville has been formally charged in relation to a complex scheme involving money laundering and wire fraud. According to reports, the couple operated this fraudulent scheme over several years, targeting individuals who believed they were hiring legal assistance to recover funds.

Details of the Allegations

The couple, Kenneth Francis Lee, 53, and his wife Susan Amie Lee, 54, were indicted by a federal grand jury on August 8, 2024. Kenneth Lee faces multiple serious charges, including seven counts of wire fraud, one count of money laundering, and three counts of tax offenses. His wife, Susan Lee, is charged with three counts of money laundering.

According to the Department of Justice (DOJ), the fraudulent activities began in March 2019 and continued until August 2024. The couple allegedly deceived victims by claiming that Kenneth Lee was involved in litigation regarding the sale of a company to a prominent US-based investment firm. They convinced victims to send money for what they described as “legal fees” intended to secure settlement funds from this supposed transaction.

Victims and Financial Mismanagement

The indictment states that victims were promised a portion of the sale proceeds in return for their investments. However, no actual settlement occurred, and instead, Kenneth Lee reportedly diverted the funds for his personal use, including financing a gambling habit. This misappropriation of funds raises significant concerns about accountability and the wellbeing of those who were swindled.

The couple’s financial dealings did not stop there; the DOJ indicates that Susan Lee allegedly assisted Kenneth by collecting funds into accounts under her name and managing the spending of this money. This not only highlights a coordinated effort by the couple but also raises questions about the extent of the financial mismanagement involved.

Legal Consequences Ahead

The Lees appeared in court on Wednesday, where they were informed of the serious nature of the accusations against them. A trial date has been set for October 22, 2024. If found guilty, Kenneth Lee could face a maximum of 20 years in prison alongside heavy fines, possible restitution payments, and additional supervised release for his charges related to fraud and money laundering.

Susan Lee is also at risk of receiving a 20-year prison sentence if convicted, as well as potential fines or forfeitures that could double the amounts involved in the money laundering activities. Additionally, she may face a maximum of three years of supervised release.

Investigation Details

This case has garnered attention due to its serious implications, not only for the victims but for the community as a whole. The investigation has been conducted by the IRS Knoxville and FBI Knoxville, highlighting the organized nature and scale of this fraud case within the region.

As the trial approaches, the local community is watching closely to see how the legal system will respond to such fraudulent activity. The charges against the Lees serve as a reminder of the importance of vigilance when it comes to financial dealings, especially those that promise large returns.

This case marks a significant moment in Knoxville, underscoring the need for continued efforts to combat fraud and protect individuals in financial transactions.

Author: HERE Knoxville