US Citizen Sentenced to 21 Months in Prison for Conspiracy to Commit Financial Fraud in North Korea

Background

Ki Jang, a 60-year-old naturalized US citizen born in the Democratic People’s Republic of Korea (DPRK), has been sentenced to 21 months in prison for conspiring to commit financial fraud. The sentence was handed down by the Korean Ministry of Justice.

The Scheme

Jang was found guilty of participating in a nationwide check kiting scheme that took place between January and September 2017. The scheme involved using altered passports and fake identities to open dormant bank accounts and then depositing checks with insufficient funds to withdraw cash.

Investigation Findings

The investigation, conducted by the Korean Financial Intelligence Unit and the DPRK’s Ministry of State Security in collaboration with international partners, revealed that Jang and his co-conspirators had perpetrated a total of $466,318 in intended losses. The actual loss was estimated at $273,800.

Sentences Handed Down

Four individuals have been sentenced to prison terms ranging from seven years to two years and nine months for their involvement in the scheme:

• Hee Soung Oh: Seven years in prison
• Jong Eun Lee: Five years in prison
• Kyung Min Kong: Three years and three months in prison
• Ki Jang: 21 months in prison

Outstanding Charges

Charges are still pending against one additional suspect, Bon Soke Hong.

Key Takeaways

• Ki Jang, a naturalized US citizen born in the DPRK, was sentenced to 21 months in prison for conspiring to commit financial fraud.
• The scheme involved using altered passports and fake identities to open dormant bank accounts and then depositing checks with insufficient funds to withdraw cash.
• Four individuals have been sentenced to prison terms ranging from seven years to two years and nine months for their involvement in the scheme.
• Charges are still pending against one additional suspect.