Korean fugitive allegedly scammed victims of W422M

Federal authorities on Saipan recently arrested a Korean fugitive who allegedly defrauded several persons of over 422 million won (about $331,804) by telling them, among other things, that students could enroll at a four-year university on Saipan.

Federal agents arrested 49-year-old Hyuk Jong Kwon after the U.S. government filed a complaint against Kwon last April 23 before the U.S. District Court for the NMI.

Assistant U.S. Attorney Jessica F. Cruz filed the complaint based on the Republic of Korea’s 2007 request to the U.S. to extradite Kwon for five counts of fraud.

During Tuesday’s hearing, U.S. District Court for the NMI chief judge Alex R. Munson granted the U.S. government’s motion to unseal the case.

Munson set the extradition hearing for June 26, 2009. He denied defense attorney Bruce Berline’s motion to temporarily release Kwon and remanded the detainee back into the custody of the U.S. Marshal.

Cruz stated in the complaint that Kwon was charged with five counts of fraud in the Republic of Korea and that warrants of his arrest were issued in May 2005 by the chief prosecutor of the Seoul Western District Prosecutor’s Office, Prosecutor Yong Hwan Jeong.

Cruz said that in September 2001, Kwon deceived Sa Ok Yoo by informing Yoo that he would help Yoo get the order for the construction of the American International University in Guam. Kwon informed Yoo that the land for the construction project had already been purchased.

Relying on false information, Yoo paid Kwon 170 million Korean won. AIU was never constructed.

In July 2004, Kwon allegedly deceived Chan Young Kim by providing information that International Business & Professional College (IBPC on Saipan) is four-year university.

Kwon also claimed that the students could obtain a U.S. beauty artist certificate after graduation and that Korean universities accept credits earned from IBPC.

He allegedly claimed that accommodations, meals and tuition are all free if the student pays a dormitory security deposit of 10 million Korean won and that the dormitory security deposit would be returned after graduation.

Çruz said Kim paid Kwon 10 million KRW.

In truth, Cruz said, the students taking IBPC courses only had 90-day travel visas, that Korean universities do not accept IBPC credits, and the students could not obtain a U.S. certificate of beauty artist after graduation.

In August 2004, Kwon provided the same false information about IBPC to Won Ho Kim, who gave Kwon 10 million KRW as dormitory security deposit.

From August 2004 to June 2005, Kwon received 80 million KRW from a total of eight victims.

After graduation, Kwon did not return Kim’s dormitory security deposit.

In October 2004, Kwon falsely informed Jong Geun Kim that students who complete a course at the Oriental Medicine & Beauty Arts University (affiliated with IBPC) would receive a U.S. certificate of beauty artist.

Kwon convinced Kim to solicit students who wanted to take the IBPC course.

Relying on this information, Kim advertised the course and agreed to send Kwon money for the students’ airfare and tuition.

From Oct. 29, 2004, to Dec. 7, 2004, Kim remitted a total of 18,410,000 KRW in airfare and tuition for the students.

Contrary to the promises, the students could not obtain a U.S. certificate of beauty artist after graduating from IBPC.

In October 2005, Kwon told Cha Bok Lee that if he invests 200 million KRW for the lease and operation of Magellan Hotel on Saipan, Kwon would return the principal and give Lee a house.

Lee paid 154 million KRW to Kwon. But contrary to his promises, Kwon did not have the funds to operate Magellan Hotel and did not return any of the investment.