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

FBI and IRS-CI Announce Sentencing of Sung Peel Hwang

• FBI Special Agent in Charge Steven Merrill
• IRS-CI Special Agent in Charge Adam Jobes announced the sentencing of Sung Peel Hwang
• A 39-year-old South Korean national and naturalized U.S. citizen
• Convicted of bank fraud and money laundering in the Northern Mariana Islands

Scheme to Defraud KAL and GIAA

• Hwang, former administrator at the KAL Guam office
• Underreported Passenger Facility Charges (PFCs)
• Kept the difference between the actual PFCs owed and the amounts paid
• Resulted in over $3.5 million deposited into Hwang’s personal bank account
• Diversion of $600,000 in KAL funds for personal use

PFCs and Responsibilities of Hwang

• KAL operates commercial passenger flights between Guam and South Korea
• All airlines using GIAA required to report passenger numbers and pay corresponding PFCs
• Hwang responsible for these tasks, as well as procuring office supplies, acting as co-signatory, and other duties

Significant Loss for KAL and GIAA

• Case uncovered through GIAA’s auditing procedures
• Considered a significant loss for both KAL and the airport authority

Sentencing and Statements

• Hwang sentenced to 41 months in federal prison
• U.S. Attorney Anderson: “Hwang’s actions cheated his employer and GIAA out of a substantial sum of money”
• FBI Special Agent in Charge Merrill: “The FBI is dedicated to addressing financial crimes that impact local communities”
• IRS-CI Special Agent in Charge Jobes: “Money stolen from businesses and communities does not vanish without consequence”

Investigation and Prosecution

• Investigation conducted by the FBI Guam Resident Agency and IRS Criminal Investigation Division
• Assistant U.S. Attorney Benjamin K. Petersburg prosecuted the case in the District of Guam