Herman Sablan, president of IBPC, said he knew Hyuk Jong Kwon who was identified as the chairman of the board of the defunct Oriental Medicine and Beauty Arts University, a former affiliate of IBPC.
Sablan said his partnership with Kwon was severed a long time ago because they discovered his wrongdoings.
“We’re one of the victims too,” he told the Variety in a phone interview.
The 50-year-old Kwon has been arrested on Saipan and now awaits his extradition to South Korea where he is facing five counts of fraud involving more than 400 million Korean won or about $342,000.
The U.S. State Department is asking for his extradition upon the request of South Korean prosecutor Yong Hwan Jeong who has been looking for the fugitive since May 2005.
U.S. District Court for the Northern Mariana Islands Chief Judge Alex Munson set Kwon’s extradition hearing for June 26.
The court appointed Bruce Berline as Kwon’s defense counsel.
U.S. Assistant Attorney Jessica F. Cruz is representing the federal government in the extradition case.
The U.S. and South Korea signed an extradition treaty in 1998.
According to court papers, in 2001 Kwon took 170 million Korean won from a woman investor whom he enticed to invest in his project on Saipan, the American International University, which never materialized.
In 2004, Kwon passed on information to prospective students in South Korea that they could get credit for enrolling at IBPC if they wanted to study in the United States because it was an accredited four-year university.
Kwon also told them that their accommodations, meals and tuition were free if they paid the dormitory security fee of 10 million Korean won, which was refundable after completing their course.
At least eight students who paid 10 million Korean won each claimed they never got the refund.
IBPC, despite calling itself a “college,” is only accredited to offer non-degree certificate programs.
Moreover, postsecondary institutions in the U.S. and South Korea do not accept IBPC credits.
When asked about the discrepancy in its name, IBPC said it was named a college because it offers postsecondary education.
Kwon is also charged with swindling investors of the defunct Oriental Medicine and Beauty Arts University and Magellan Hotel.
“Contrary to his promises, Kwon did not have funds to operate Magellan Hotel and did not return any of the investment,” court documents stated.
