Financial Crime World

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

FBI Guam and IRS-Criminal Investigation Division Bring Down Korean Air Lines Administrator

On [date], FBI Guam and IRS-Criminal Investigation Division announced the sentencing of Sung Peel Hwang, a 39-year-old Republic of Korea national and naturalized U.S. citizen, for his role in a financial fraud and money laundering scheme.

Sung Peel Hwang Sentenced to Prison

  • A district court judge sentenced Hwang to serve 41 months in prison.
  • The judge also ordered five years of supervised release, restitution of $615,271.51, and a mandatory $200 special assessment fee.

Financial Fraud and Money Laundering Scheme

From September 2015 to December 2018, Hwang, an administrator at the Korean Air Lines (KAL) Guam office, engaged in a multimillion-dollar embezzlement and bank fraud scheme.

Duties and Responsibilities

As a KAL administrator at the Guam office based at the Guam International Airport, Hwang was in charge of:

  • Reporting the number of passengers and paying the corresponding Passenger Facility Charges (PFC) to Guam International Airport Authority (GIAA).
  • Procuring office supplies.
  • Handling part of the KAL Guam business checking account at Bank of Guam.
  • Serving as one of the two co-signatories.

Exploiting His Position

Hwang exploited his position by:

  • Underreporting PFCs to GIAA and keeping the difference for his personal gain.
  • Diverting more than $600,000 of KAL funds to his personal accounts.
  • Laundering over $3.5 million using underreported PFCs.

Impact on Korean Air Lines and Guam International Airport Authority

The fraudulent activities perpetrated by Hwang affected not only Korean Air Lines but also the Guam International Airport Authority. U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, Shawn N. Anderson, stated:

“The fraudulent activities perpetrated by Hwang not only affected Korean Air Lines but also the GIAA. This sentence sends a clear message that such criminal actions will not go unpunished.”

Law Enforcement Partners and Prosecutor

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.

Remarks by Law Enforcement Officials

  • FBI Special Agent in Charge, Steven Merrill: “The FBI is steadfast in our commitment to pursuing financial crimes that negatively impact our communities. The imposed sentence is a strong deterrent for individuals engaged in similar deceitful criminal schemes.”
  • IRS-Criminal Investigation Division Special Agent in Charge, Adam Jobes: “Hwang’s actions have caused significant harm to those he betrayed. The sentencing today demonstrates that the IRS-Criminal Investigation Division remains committed to fighting financial crimes and ensuring that offenders are held accountable for their actions.”