Title: South Korean National Sentenced for Bank Fraud and Money Laundering at Guam’s Korean Air Lines Office

Date: May 6, 2024

Hwang Sentenced to 41 Months for Defrauding Korean Air Lines and Guam International Airport Authority

Hagatña, Guam – The United States Attorney’s Office for the Districts of Guam and the Northern Mariana Islands announced that Sung Peel Hwang, a Republic of Korea native and naturalized U.S. citizen, was sentenced to 41 months in prison for Bank Fraud and Money Laundering charges.

Scheme Period and Responsibilities

From September 2015 to December 2018, Hwang, a former administrator at the Korean Air Lines (KAL) Guam office, engaged in a fraudulent scheme [1]. At the time, Hwang was responsible for reporting passenger numbers and paying the corresponding Passenger Facility Charges (PFC) to the Guam International Airport Authority (GIAA). He also handled office supplies, managed services, and was one of the two co-signatories on KAL Guam’s business checking account at the Bank of Guam.

Unraveling the Fraudulent Activities

The case came to light when Hwang underreported the PFC owed to GIAA and kept the difference for personal use. During the three-year period, Hwang diverted over $600,000 of KAL funds and transferred over $3.5 million into his personal bank account [2].

Consequences of Hwang’s Actions

United States Attorney Shawn N. Anderson stated, “Mr. Hwang’s deceitful actions deprived his employer and GIAA of substantial funds.” The sentence marks an essential warning to those who try to evade accountability for their actions [3].

IRS Criminal Investigation (CI) Special Agent in Charge Adam Jobes added, “Mr. Hwang’s brief-lived financial gain came at the expense of his employer and the community” [3]. The CI will relentlessly pursue those engaged in financial crimes.

FBI Special Agent in Charge Steven Merrill stated, “Financial crimes can have a detrimental impact on our communities” [3]. The FBI will not tolerate such criminal conduct.

Investigation and Prosecution

The investigation was conducted by the IRS Criminal Investigation (CI) and the FBI Guam Resident Agency. The case was prosecuted by Assistant United States Attorney Benjamin K. Petersburg.

About IRS Criminal Investigation (CI)

CI, the criminal investigation arm of the IRS, is dedicated to investigating financial crimes, including tax fraud, money laundering, narcotics trafficking, and public corruption [4]. CI special agents secure a more than 90 percent federal conviction rate and have jurisdiction over Internal Revenue Code violations [5]. CI has 20 field offices across the U.S. and 12 attachés abroad.

[1] United States Attorney’s Office for the Districts of Guam and the Northern Mariana Islands. (2024, May 6). South Korean national sentenced for bank fraud and money laundering scheme at Guam’s Korean Air Lines office [Press release]. Retrieved from https://www.justice.gov/usao-gw/pr/south-korean-national-sentenced-bank-fraud-and-money-laundering-scheme-guams-korean

[2] Ibid.

[3] Ibid.

[4] IRS.gov. (n.d.). About IRS Criminal Investigation. Retrieved from https://www.irs.gov/criminal-investigation

[5] IRS.gov. (n.d.). Statistics. Retrieved from https://www.irs.gov/criminal-investigation/stats

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