Title: “Don Sung Peel Hwang Sentenced for Financial Fraud at Guam International Airport”

U.S. Citizen and Former Korean Air Lines Administrator Receives 41-month Prison Term

Hagatña, Guam ‒ In a significant fraud case, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, Shawn N. Anderson, announced that Don Sung Peel Hwang, a 39-year-old Korean national and naturalized U.S. citizen, was sentenced to 41 months in prison for embezzlement and bank fraud at the Guam International Airport.

Background

Hwang, who had been an administrator for Korean Air Lines (KAL) Guam office, was accused of underreporting Passenger Facility Charges (PFC) due to the airport and pocketing the difference, amounting to over $600,000.

The Scheme

From September 2015 to December 2018, Hwang, during his tenure as an administrator for KAL Guam:

1. Deceived his employer by underreporting the PFC owed to the Guam International Airport Authority (GIAA)
2. Defrauded GIAA by keeping the difference for personal gain

Hwang was responsible for several tasks at the KAL Guam office, including reporting passenger numbers, paying corresponding PFCs, procuring office supplies and services, and acting as one of two co-signatories for KAL Guam’s business account at Bank of Guam.

The Impact

The court also sentenced Hwang to:

• Five years of supervised release
• Restitution of $615,271.51
• $200 special assessment fee

During the three-year fraudulent scheme, Hwang:

• Deposited over $3.5 million in KAL funds into his personal account
• Appropriated over $600,000 for personal use

Concerns and Messages

U.S. Attorney, Anderson, expressed his concerns about Hwang’s actions, stating, “Hwang took advantage of his position within KAL Guam to cheat his employer and GIAA out of a substantial sum of money.” Anderson emphasized the importance of accountability and deterrence.

FBI Special Agent in Charge Steven Merrill stressed, “The FBI is committed to identifying and investigating financial fraud cases in Guam that impact our communities. Let this sentence serve as a warning to others who might be considering engaging in criminal conduct similar to Hwang’s.”

IRS-CI Special Agent in Charge Adam Jobes added, “Mr. Hwang’s actions were driven by greed and resulted in serious consequences. Today’s sentencing reflects our unwavering commitment to combating financial crimes and ensuring that those responsible pay the price for their illicit activities.”

Investigation and Prosecution

This investigation was led by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Benjamin K. Petersburg prosecuted the case in the District of Guam.