Title: “South Korean National Sentenced for Bank Fraud and Money Laundering in Northern Mariana Islands: Defrauded Korean Air Lines and Guam International Airport of over $600,000”
Guam: Sung Peel Hwang Sentenced for Bank Fraud and Money Laundering
Hagatña, Guam – In a recent legal development, US Attorney Shawn N. Anderson announced that Sung Peel Hwang, a 39-year-old South Korean national and naturalized US citizen, was sentenced to serve 41 months in federal prison. Hwang was charged with Bank Fraud and Money Laundering in the Districts of Guam and the Northern Mariana Islands.
Scheme to Defraud Employer and Embezzle Funds
From September 2015 to December 2018, Hwang, who served as an administrator at the Guam office of Korean Air Lines (KAL) at the Guam International Airport (GIAA), engaged in a scheme to defraud his employer and embezzle over $600,000. Hwang’s responsibilities included:
- Reporting the number of passengers and paying the corresponding Passenger Facility Charges (PFC) to GIAA
- Procuring and paying for office supplies and services
- Acting as one of the two co-signatories on KAL Guam’s business checking account at the Bank of Guam
Underreporting PFC and Misappropriating Funds
As part of the scheme, Hwang underreported the actual PFC owed to GIAA and kept the difference for personal gain. Over three years, Hwang deposited more than $3.5 million of KAL funds into his personal account and misappropriated over $600,000 for his own use.
Sentencing and Restitution
The Northern Mariana Islands Court also ordered five years of supervised release, restitution of $615,271.51, and a mandatory $200 special assessment fee.
Remarks from US Attorney and Law Enforcement Agencies
US Attorney Anderson remarked, “Defendant Hwang took advantage of his position and cheated both his employer and GIAA. Fortunately, GIAA’s auditing procedures uncovered this scheme. This sentence sends a clear message of accountability and deterrence. I commend our law enforcement partners for their diligent work in bringing Hwang to justice.”
FBI Special Agent in Charge Steven Merrill stated, “Financial crimes impact our communities, and the FBI remains committed to addressing such issues. Today’s sentence sends a strong message to potential offenders.”
IRS-CI Special Agent in Charge Adam Jobes added, “Mr. Hwang’s actions may have provided him with a short-term financial gain, but the true cost was borne by those he defrauded and his community. The IRS-CI will continue to bring those responsible for financial crimes to justice.”
Investigation and Prosecution
The investigation was carried out by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Benjamin K. Petersburg represented the prosecution in the District of Guam. The case was prosecuted with the collaborative effort of these federal agencies.