Korean Business Administrator Sentenced for Financial Fraud and Money Laundering in Northern Mariana Islands

According to a recent announcement by the FBI Guam and the U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, a Korean business administrator, Sung Peel Hwang, has been sentenced to serve 41 months in prison for his involvement in bank fraud and money laundering schemes in the Northern Mariana Islands.

Hwang’s Role at Korean Air Lines (KAL) Guam Office

Sung Peel Hwang, a 39-year-old naturalized American citizen residing in the Republic of Korea, worked as an administrator at the Korean Air Lines (KAL) Guam office located at the Guam International Airport. KAL, which operates commercial passenger flights between Guam and South Korea, is required by law to report the number of passengers on their flights and pay a corresponding Passenger Facility Charge (PFC) to the Guam International Airport Authority (GIAA).

The Scheme to Defraud and Embezzle Funds

Between September 2015 and December 2018, Hwang devised an elaborate scheme to defraud his employer and embezzle more than $600,000. In his roles as an administrator, Hwang was responsible for reporting passenger numbers, paying the corresponding PFC, procuring office supplies and services, and co-signing KAL Guam’s business checking account at the Bank of Guam.

As part of his scheme, Hwang underreported the PFC owed to GIAA and kept the difference. Over three years, Hwang transferred over $3.5 million in KAL funds into his personal bank account and used approximately $600,000 for personal gain.

The Impact of Hwang’s Actions

U.S. Attorney Shawn N. Anderson expressed his disappointment towards Hwang, stating,

“Hwang cheated his employer and GIAA out of a substantial sum of money. But thanks to GIAA’s vigilant auditing procedures, we were able to uncover this scheme and bring Hwang to justice.”

FBI Special Agent in Charge Steven Merrill shared his concerns about financial crimes, saying,

“The FBI is committed to addressing financial crimes that have a significant impact on our communities. Hwang’s sentence should serve as a cautionary tale to others who might consider engaging in similar criminal activities.”

IRS-CI Special Agent in Charge Adam Jobes echoed Merrill’s sentiments, adding,

“Hwang’s greed may have provided him with a temporary financial gain, but at great cost to those he stole from and to the detriment of his community. Today’s sentencing demonstrates that CI takes financial fraud seriously and that wrongdoers will be held accountable.”

Collaborative Investigation and Prosecution

The investigation into Hwang’s financial activities was a collaborative effort between the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. The prosecution of this case was handled by Benjamin K. Petersburg, Assistant United States Attorney for the District of Guam.