Guam Man Sentenced to 41 Months in Federal Prison for Bank Fraud and Money Laundering Scheme

Hagatña, GUAM - A Devastating Case of Corporate Embezzlement Unfolds

A 39-year-old man from the Republic of Korea and a naturalized citizen of the United States has been sentenced to 41 months in federal prison for his role in a bank fraud and money laundering scheme that defrauded his employer and the Guam International Airport Authority (GIAA) out of over $600,000.

The Accused: Sung Peel Hwang

Sung Peel Hwang, also known as Don Sung Peel Hwang, was charged with Bank Fraud and Money Laundering after an investigation by the FBI and IRS-CI revealed that he had embezzled funds from his employer, Korean Air Lines (KAL), between 2015 and 2018.

The Scheme: Underreporting Passenger Numbers and Embezzlement

As an administrator at KAL’s Guam office, Hwang was responsible for reporting passenger numbers and paying a corresponding Passenger Facility Charge to GIAA. However, instead of accurately reporting the passenger numbers, he underreported them and kept the difference between the actual charge owed and the amount paid for himself.

The Consequences: Over $600,000 in Diverted Funds

Over the course of three years, Hwang deposited over $3.5 million in KAL funds into his personal bank account and diverted over $600,000 to his own use.

The Investigation and Prosecution

The FBI and IRS-CI investigation was led by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Benjamin K. Petersburg.

Hwang’s Sentence

Hwang’s sentence includes:

• 41 months of imprisonment
• Five years of supervised release
• Restitution of over $615,000
• A mandatory special assessment fee of $200

U.S. Attorney Shawn N. Anderson stated that Hwang’s sentence is a “strong message of accountability and deterrence” and praised the federal law enforcement agencies for their hard work in bringing him to justice.