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Ex-Ladera operator directed to pay former school owners $1.2M
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Posted on Mar 21 2012
Superior Court Associate Judge Kenneth L. Govendo has ordered the former operator of the defunct Ladera International School of Saipan to pay the school’s former owners $1.2 million for breach of contract and fraud.
In a default judgment issued last week, Govendo found Sung Yun Kim liable to pay brothers Yong Nam Park and Yong Sung Park and their parent, Pil Hwan Park, $437,854.88 for breach of contract and $11,500 as reimbursement of attorney’s fees.
Govendo also awarded the Parks $761,105.49 based upon Kim’s fraudulent conduct.
On the breach of contract issue, the judge determined that the $437,854.55 represents the balance of the agreed purchase price for the interest in Ladera based on the terms and conditions of their assets purchase agreement.
As for the fraud issue, Govendo determined that based upon wire transfer documents and testimonies, Kim misappropriated $322,349.95 for her personal use.
Also based on the audit and other evidence, Govendo said that Kim misappropriated an additional $438,762.54 that were provided her by the Parks for Ladera.
The Parks filed the $1-million lawsuit against Kim in 2011 for allegedly mismanaging Ladera and embezzling its funds.
Yong Nam Park and Kim set up the Ladera School with the Park brothers as shareholders. Since 2005, Kim was allegedly primarily responsible for handling financial matters relating to the Ladera school.
According to the complaint, Kim grossly mismanaged the school, failed to pay corporate taxes, embezzled funds, failed to pay the wages to teachers and caused substantial damage to the school and to the Parks.
When Kim was arrested in South Korea in February 2010 on charges of engaging in fraudulent activities relating to her business in the country, the Parks took over the operation of Ladera and learned about her mismanagement of the school.
Ladera shut down in August 2010 after more than four years of operation. Last year, Superior Court associate judge David A. Wiseman approved the sale of the Ladera property to a group of investors for $505,000.
