HAGÅTÑA (The Guam Daily Post) — A former Korean Air office manager denied in a federal court case that he deposited company checks into his personal bank account.
Sung Peel Hwang appeared in the District Court of Guam on Tuesday to answer to charges of bank fraud, aggravated identity theft and money laundering.
Hwang’s charges stem from allegations that, from December 2015 to December 2018, he wired money that was to be used for a passenger facility charge into his own bank account rather than Korean Air’s bank account on Guam. As office manager for Korean Air’s Guam office, Hwang was responsible for managing the airline’s Bank of Guam account, according to court documents.
Hwang was charged in April. His appearance on Tuesday comes after he was located in Dallas and brought before the Northern District of Texas’ federal court. Hwang elected to have hearings be held on Guam upon transfer of the case.
In the hearing, Hwang pleaded not guilty to the charges and is set to go to trial on Aug. 17.
Hwang was released from custody after entering his plea, and his conditions include being allowed to travel to Texas until his trial.
Manager duties
According to Hwang’s indictment, one of his duties as office manager involved determining how much Korean Air would need to pay the Guam International Airport for a passenger facility charge for each passenger on each flight operated out of Guam.
After reporting the number of passengers to Korean Air, money would be wired to the on-island bank account. Hwang was responsible for issuing the check to the airport.
From December 2015 to December 2018, however, Hwang “fraudulently modified legitimate KAL checks made to pay (passenger facility charges) and other office expenses by changing the payee to himself” before allegedly depositing the checks into his personal checking account, the indictment states. Additionally, with some checks, he allegedly forged the signature of his co-signatory to make them appear legitimate.
Hwang then issued checks to the airport that had less than the true amount KAL owed, according to the indictment.
In the span of three years, Hwang allegedly deposited 15 checks in amounts ranging from $1,000 to $95,000.
The indictment also calls for Hwang, if convicted, to forfeit the amount he deposited to himself to the U.S. government.
According to Post files, an Office of Public Accountability audit in 2019 alleged that a Korean Air’s former Guam-based manager was the subject of an embezzlement allegation in a similar time period as Hwang’s charges allege. In addition, it was believed the “individuals fled to the mainland U.S.”
A Korean Air plane makes its final approach to land at the A.B. Won Pat Guam International Airport on May 4, 2023.
