Korean National Sentenced for Money Laundering and Bank Fraud Scheme in Northern Mariana Islands

FHAGATÑA, Guam 🇨🇵 - In a significant crackdown on financial crimes in the Northern Mariana Islands, a Republic of Korea national and naturalized US citizen, Sung Peel Hwang, 39, was sentenced to serve 41 months in federal prison. Hwang, who previously worked as an administrator for Korean Air Lines (KAL) Guam office at the Guam International Airport, was found guilty of Bank Fraud and Money Laundering.

The Complex Scheme

From September 2015 through December 2018, Hwang masterminded a complex scheme to defraud his employer, KAL, and the Guam International Airport Authority (GIAA), embezzling more than $600,000 through underreported Passenger Facility Charges (PFC). As an administrator at KAL Guam office, Hwang was responsible for reporting PFC numbers and making corresponding payments to GIAA. He also managed the business checks held by KAL at the Bank of Guam, one of the two signatories.

1. Devious Acts: Hwang kept the difference between the actual PFC owed and the PFC reported, amassing over $3.5 million in KAL funds in his personal bank account.
2. Breach of Trust: By diverting $600,000 to himself, Hwang betrayed the trust placed in him by both his employer and the Airport Authority.

The Consequences

United States Attorney Shawn Anderson stated, “Hwang’s deceitful actions cheated his employer and the GIAA out of substantial funds. Fortunately, GIAA’s auditing procedures exposed this intricate scheme. The sentence imposed sends a powerful message of accountability and serves as a deterrent to those considering similar criminal conduct.”

FBI Special Agent in Charge Steven Merrill added, “The FBI is committed to addressing financial crimes that jeopardize our communities. This sentence acts as a potent reminder to potential offenders.”

IRS-CI Special Agent in Charge Adam Jobes commented, “The consequences of Hwang’s greed are far-reaching. This sentence highlights the unyielding commitment of CI in combating financial crime and ensuring that fraudsters are held accountable for their actions.”

The Investigation

The investigation was orchestrated by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Benjamin K. Petersburg handled the prosecution for the District of Guam.