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

Federal court in Hagatña, Guam recently sentenced Sung Peel Hwang to 41 months in federal prison following his conviction for bank fraud and money laundering in the Northern Mariana Islands. Hwang, a 39-year-old Korean national and naturalized U.S. citizen, was an administrator at the Guam office of Korean Air Lines (KAL) at the Guam International Airport.

Fraudulent Activities

According to the prosecution, Hwang engaged in a three-year-long scheme to defraud his employer, KAL, and embezzle over $600,000. He underreported the Passenger Facility Charges (PFC) owed to the Guam International Airport Authority (GIAA) and kept the difference for himself. From September 2015 to December 2018, Hwang deposited over $3.5 million of KAL’s funds into his personal account, diverting a portion of over $600,000 towards his personal use.

Discovery and Investigation

GIAA’s auditing procedures eventually uncovered Hwang’s fraudulent activities. The U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, Shawn N. Anderson, stated, “Hwang cheated his employer and GIAA out of a substantial sum of money. We are glad that our investigative efforts and those of our law enforcement partners have led to a just outcome in this case.”

The FBI Special Agent in Charge, Steven Merrill, spoke about the impact of such financial crimes on the community, saying, “The FBI is dedicated to addressing financial crimes, as they have far-reaching consequences. This sentence is a strong reminder of the accountability that comes with such actions.”

IRS-CI’s Special Agent in Charge, Adam Jobes, added, “Mr. Hwang thought he could get away with this temporary financial gain, but at the cost of those he stole from and the detriment of his community. Today’s sentencing is an affirmation that CI remains committed to identifying and prosecuting financial crimes.”

Collaborative Investigation

The investigation into the case was conducted collaboratively by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Benjamin K. Petersburg handled the prosecution of the case.