Financial Crime World

Korean National Sentenced to 41 Months in Prison for Bank Fraud and Money Laundering in Northern Mariana Islands

Federal authorities announced that Sung Peel Hwang, a 39-year-old Korean national and naturalized US citizen, was sentenced to serve 41 months in prison following his conviction for bank fraud and money laundering in the Northern Mariana Islands.

Background

Hwang worked as an administrator for Korean Air Lines (KAL) Guam office at the Guam International Airport. In this role, he was responsible for:

  1. Reporting the number of passengers and paying the corresponding Passenger Facility Charges (PFC) to the Guam International Airport Authority,
  2. Procuring office supplies and services, and
  3. Acting as one of two check-signatories for KAL Guam’s business account at Bank of Guam.

Fraudulent Activities

Between September 2015 and December 2018, Hwang:

  1. Underreported the PFC owed to the Guam International Airport Authority and kept the difference for himself.
  2. Deposited over $3.5 million in KAL funds into his personal bank account.
  3. Diverted over $600,000 for his personal use.

Consequences and Sentencing

His actions led to a substantial loss for his employer and the Airport Authority. The consequences include:

  • A loss for KAL and the Airport Authority
  • US Attorney Shawn N. Anderson’s statement: “Hwang cheated his employer and GIAA out of a substantial sum of money. Fortunate[ly], GIAA’s auditing procedures eventually revealed this scheme.”
  • FBI Special Agent in Charge Steven Merrill’s statement: “The FBI is focused on addressing financial crimes that have an impact on our communities. This sentence should give pause to others who consider engaging in similar criminal conduct.”
  • IRS Criminal Investigation Division Special Agent in Charge Adam Jobes’ statement: “Mr. Hwang’s greed may have netted him a temporary windfall, but at great cost to those he stole from and to the detriment of his community. Today’s sentencing shows that we are committed to fighting financial crime and making sure that fraudsters pay the just cost for those crimes.”

Investigation and Prosecution

The case was investigated by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Benjamin K. Petersburg prosecuted the case.