Title: Former Korean Air Lines Manager in Northern Mariana Islands Sentenced for Bank Fraud and Money Laundering Scheme

Subtitle

• Shawn N. Anderson, U.S. Attorney for Guam and the Northern Mariana Islands, announces the sentencing of Sung Peel Hwang
• Hwang, a former Korean Air Lines manager, received a 41-month imprisonment term for bank fraud and money laundering

Background

• Hwang, also known as Don Sung Peel Hwang, pleaded guilty to defrauding Wells Fargo Bank and committing money laundering
• He was responsible for managing the Guam office of Korean Air Lines

Fraudulent Activities

• Opened four bank accounts in the name of Korean Air Cargo, Inc.
• Deposited personal checks from Korean Air Lines into the fraudulent accounts
• Transferred funds to various US and Korean accounts
• Withdrew cash directly
• Misrepresented transactions in Korean Air Lines’ bank statements to accountants
• Filed false financial statements with the Securities and Exchange Commission
• Failed to disclose transactions to auditors or management

Discovery and Sentencing

• Criminal activities uncovered during a joint investigation by the U.S. Department of Transportation, Office of Inspector General, and the Federal Bureau of Investigation
• Sentencing took place on October 11, 2022
• Hwang ordered to pay restitution totaling $367,489.80 to Wells Fargo Bank and Korean Airlines

Impact

• Emphasizes the importance of maintaining strong financial controls and transparency in business operations
• Serves as a warning to individuals engaging in fraudulent activities against financial institutions and corporations

Quote

“This case illustrates the importance of maintaining strong financial controls and transparency in business operations, particularly in the aviation industry. It serves as a warning to individuals engaging in fraudulent activities against financial institutions and corporations to face the consequences for their actions.”

- Shawn N. Anderson, U.S. Attorney for Guam and the Northern Mariana Islands