Former LA attorney accused in $47M visa scheme

A federal grand jury Wednesday indicted a former Los Angeles attorney for allegedly defrauding foreign investors who sought permanent residency in the U.S. through the EB-5 Immigrant Investor Program.

Under that program, the federal government awards visas to foreign nationals who invest at least $500,000 in a U.S. business. The investor is awarded a permanent green card if he or she can prove that their investment resulted in creating or preserving at least ten jobs for qualified U.S. workers.

The nine-count indictment alleges that Justin Moongyu Lee took approximately $47 million from 94 investors from South Korea and China, promising them that the money would be used to build an ethanol production facility.  

“Instead of using the victims’ money for the biofuel plant, Lee allegedly misappropriated the money for his own use,” according to a statement from the U.S. Attorney’s Office.

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The ethanol plant was never built, the promised jobs were never created, and the foreign nationals lost their opportunity to obtain permanent residency, according to the indictment handed down by a grand jury sitting in Santa Ana.

Lee, 57, was arrested in South Korea on related charges last year and remains in jail there, according to U.S. Attorney spokesman Thom Mrozek.

“We don’t know if we’ll ever prosecute him here,” Mrozek said. “South Korea is not obligated to extradite their own citizens to the U.S. for prosecution.”

The Securities and Exchange Commission also filed a civil complaint against Lee, his wife, Rebecca Taewon Lee and former law partner Thomas Edward Kent.

An attorney for Lee’s wife said she denied the charges.

“She was not involved in any fraudulent activity,” said attorney George B. Newhouse, Jr. “She was an office manager for her husband.” 

Attorneys for Lee could not be located, while Lee's former law partner, Thomas Kent, had "no comment due to pending litigation," according to an email to KPCC.

"The State Bar of California has taken disciplinary action against Justin Lee because of an alleged 'major misappropriation of client funds,' and he is no longer allowed to practice law," according to the U.S. Attorney's statement.

Indictment