Title: Korean Air Lines Administrator Sentenced for Financial Fraud and Money Laundering in Northern Mariana Islands

Saipan, Northern Mariana Islands

In a landmark case, Shawn N. Anderson, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the sentencing of defendant Sung Peel Hwang. Hwang, a Republic of Korea national and naturalized American citizen, was sentenced to 41 months in prison for Bank Fraud and Money Laundering. The crimes totaled over $600,000.

Background

Hwang, an administrator at the Korean Air Lines (KAL) office in Guam International Airport, engaged in a sophisticated three-year scheme underreporting Passenger Facility Charges (PFC) to Guam International Airport Authority (GIAA) and misappropriating company funds. His responsibilities included:

Reporting passenger numbers and paying the corresponding PFC
Managing office supplies and services
Acting as one of two co-signatories on KAL Guam’s business checking account at Bank of Guam

Scheme and Consequences

Hwang underreported PFC, keeping the difference between the actual PFC owed and the PFC paid for his personal gain. Over three years, he illegally deposited over $3.5 million into his personal bank account and stole over $600,000 for personal use.

Statement from U.S. Attorney Anderson

“Hwang deceived his employer and GIAA out of a considerable amount of money. GIAA’s auditing procedures eventually exposed this fraud. Today’s sentence serves as an accountability and deterrence message for those who commit financial crimes.”

FBI’s Statement

FBI Special Agent in Charge Steven Merrill stated, “The FBI takes financial crimes seriously as they impact our communities. Today’s sentence sends a clear message to potential offenders that such criminal activities will be pursued and punished.”

IRS-CI’s Statement

IRS-CI Special Agent in Charge Adam Jobes added, “Hwang’s greed led him to a short-term financial gain at a steep cost to his victims and the community. This sentence demonstrates the commitment of the Criminal Investigation Division to combating financial crimes and ensuring offenders pay the full price.”

Investigation and Prosecution

The investigation was conducted by the FBI Guam Resident Agency and the IRS Criminal Investigation Division. This case was prosecuted by Assistant United States Attorney Benjamin K. Petersburg in the District of Guam.