Northern Mariana Islands: Former Korean Air Lines Employee Sentenced for Bank Fraud and Money Laundering
A 39-year-old man from the Republic of Korea and naturalized citizen of the United States has been sentenced to serve 41 months in prison for bank fraud and money laundering. Sung Peel Hwang, also known as Don Sung Peel Hwang, was found guilty of embezzling over $600,000 from his employer, Korean Air Lines (KAL) Guam office at the Guam International Airport.
Scheme to Defraud Employer and Authority
According to court documents, between September 2015 and December 2018, Hwang engaged in a scheme to defraud KAL and the Guam International Airport Authority (GIAA). As an administrator at the KAL Guam office, Hwang was responsible for reporting passenger numbers and paying corresponding Passenger Facility Charges (PFC) to GIAA. Instead, he underreported the PFC owed to GIAA and kept the difference for himself.
Diversion of Funds
Hwang deposited over $3.5 million in KAL funds into his personal bank account and diverted over $600,000 to his own use. The scheme was eventually uncovered by GIAA’s auditing procedures.
Sentencing and Reaction
United States Attorney Shawn N. Anderson praised the sentencing, saying it sends a strong message of accountability and deterrence. “Hwang cheated his employer and GIAA out of a substantial sum of money,” Anderson stated. “Fortunately, GIAA’s auditing procedures eventually revealed this scheme.”
FBI Special Agent in Charge Steven Merrill emphasized the importance of addressing financial crimes that impact communities. “This sentence should give pause to others who consider engaging in similar criminal conduct,” he said.
IRS-CI Special Agent in Charge Adam Jobes added, “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.”
Investigation and Prosecution
The investigation was conducted by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Benjamin K. Petersburg.
Sentence Details
Hwang’s sentence includes:
- 41 months in prison
- Five years of supervised release
- Restitution of $615,271.51
- A mandatory $200 special assessment fee