Title: “South Korean National Sentenced for Bank Fraud and Money Laundering in Northern Mariana Islands Worth Over $600,000”

Sung Peel Hwang, a South Korean National, Sentenced for Bank Fraud and Money Laundering

Federal officials in Guam have announced the sentencing of Sung Peel Hwang, a 39-year-old South Korean national and naturalized U.S. citizen. Hwang defrauded his employer, Korean Air Lines (KAL), and the Northern Mariana Islands (NMI) International Airport Authority. Here’s a closer look at the case:

Crime and Consequences

From September 2015 to December 2018, Hwang, based in the Guam office of KAL at the NMI International Airport, engaged in a fraudulent and embezzlement scheme. KAL operates commercial passenger flights between Guam and South Korea, necessitating reporting passenger numbers and paying corresponding Passenger Facility Charges (PFC) to the airport authority. Hwang, as an administrator, was responsible for these tasks. As part of his scheme, he underreported PFCs and kept the difference for personal use.

Over the three-year period, Hwang diverted more than $600,000 of KAL funds to his personal account. He also transferred over $3.5 million for his own use.

Judgment and Sentencing

On February 15, 2023, Hwang was sentenced to 41 months in prison, five years of supervised release, pay restitution of $615,271.51, and a $200 special assessment fee. U.S. Attorney for Guam and the NMI, Shawn N. Anderson, stated, “Hwang cheated his employer and the airport authority of substantial funds. Unfortunately, the airport authority’s auditing procedures eventually exposed this scheme. The sentence imposed by the court is a warning of accountability and deterrence.”

FBI’s Role

FBI Special Agent in Charge Steven Merrill declared, “The FBI remains dedicated to investigating financial crimes that adversely impact our communities. This sentence intends to serve as a warning to others considering similar deceitful conduct.” IRS-CI Special Agent in Charge Adam Jobes echoed Merrill’s sentiments, adding, “Today’s sentencing demonstrates our commitment to combating financial crimes and ensuring wrongdoers bear the consequences of their actions.”

Investigation and Prosecution

The investigation into the financial misappropriation was led by the FBI Guam Resident Agency and the Internal Revenue Service Criminal Investigation Division. The case was prosecuted by Benjamin K. Petersburg, the Assistant U.S. Attorney for the District of Guam.