KNOXVILLE, Tenn. (WVLT) – A Powell man has been sentenced to more than eight years behind bars on fraud and money laundering charges.
According to the United States Department of Justice, 55-year-old Kenneth Francis Lee solicited money from victims between 2019 and 2024 to pay for litigation costs associated with a purported legal case despite there being no such legal case or settlement.
Lee would then use these funds to support his own lifestyle and an online gambling habit, the DOJ said. To hide the source, control and ownership of the stolen money, Lee worked with others to transfer the money between multiple bank accounts.
On Thursday, the DOJ said Lee was sentenced to 99 months behind bars and ordered to pay $7.02 million in restitution to his victims. After he is released, he will be on supervised release for three years.
The DOJ said this is Lee’s third federal conviction. His first in 2010 involved a mortgage fraud scheme that led to being convicted of wire fraud and money laundering, and his second in 2019 involved tax evasion and failure to file tax returns.
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