March 29, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Local Judge to Decide if Former South Korea Earthquake Research Center Should be Jailed for Money Laundering

A Los Angeles federal judge will decide Thursday  if the former director of South Korea’s Earthquake Research Center should be jailed prior to being sentenced in October for money laundering.

Heon-Cheol Chi, 59, of South Korea, was convicted late Monday of using a Southern California bank account to launder bribes he received from two seismological companies, including one based in Pasadena. The offense carries a possible sentence of up to 10 years in federal prison.

The jury that issued the single guilty verdict was unable to reach a unanimous decision on five other money laundering charges. According to evidence presented at trial, Chi laundered funds that were the proceeds of bribes he accepted in violation of South Korea law.

“The American financial system is not to be used as a storehouse for the proceeds of corrupt activity,” said acting U.S. Attorney Sandra R. Brown. “This defendant used a bank account here in Southern California to conceal over $1 million in bribe money obtained through the abuse of his public position. This conviction sends a message that should be heard around the world.”

From at least 2009 through 2015, Chi abused his official position at the earthquake center at the Korea Institute of Geoscience and Mineral Resources to demand and receive more than $1 million in bribes from two seismological companies in exchange for providing them with unfair business advantages in the South Korean seismological market, according to the U.S. Attorney’s Office.

Jurors during the four-day trial in downtown Los Angeles heard evidence that Chi advocated the purchase and use of equipment from the two companies by KIGAM and other South Korean customers.

He also provided the companies with market intelligence and inside information, including confidential information about their competitors and the KIGAM bidding process, according to federal prosecutors.

The evidence showed that Chi directed that his bribe payments be paid in cash or wired to his personal account at a Bank of America branch in Glendora. From that account, Chi transferred roughly half of those bribe payments to an investment account he held in New York City, and he spent nearly 70 percent of the remaining funds in South Korea, where he lived and worked, prosecutors said.

“Defendant Chi exploited the U.S. banking system to enrich himself and to conceal his corrupt practices,” said Deirdre Fike, assistant director in charge of the FBI’s Los Angeles field office. “The FBI and our partners will continue to hold accountable international offenders who gain the advantage on the global playing field by breaking U.S. law.”

In addition to his use of cash payments and the U.S. banking system, evidence showed that Chi took a number of steps to conceal his bribery scheme, including instructing representatives of the companies to delete or not respond to his emails, requesting that company representatives not inform his colleagues at KIGAM of his illegal arrangements with these companies, and by sending fictitious invoices listing a false address in New Jersey.

According to the trial evidence, Chi accepted bribes that exceeded his legitimate income from KIGAM by a substantial margin.

Chi is scheduled to appear Thursday before U.S. District Judge John F. Walter, who will consider a motion by prosecutors to have him remanded into custody to await his Oct. 2 sentencing hearing.

Related Posts

(Video) Series A Coffee Now Open in Beverly Hills at 8328 Wilshire Blvd

March 29, 2024

March 29, 2024

Located in the space that formerly housed a Coffee Bean and Tea Leaf. Try the Black Pearl Iced Coffee. @culvercitywlanews...

Los Angeles Fire Department Responds to Multi-Vehicle Collision Involving MTA Bus

March 28, 2024

March 28, 2024

Firefighters and Paramedics Assess 14 Individuals, Transport Several to Hospital Los Angeles Fire Department (LAFD) firefighters and paramedics responded to...

Los Angeles County Braces for Heavy Rain, Snow, and Possible Thunderstorms Over Weekend

March 28, 2024

March 28, 2024

National Weather Service Issues Alerts for Flooding and Possible Tornado  According to the latest reports from the National Weather Service...

Two Men Charged in Murder of Sidney Barrett Morris at L.A. Live Restaurant

March 28, 2024

March 28, 2024

DA Gascón Announces Charges; LAPD Chief Choi Expresses Condolences.  Los Angeles County District Attorney George Gascón announced murder charges Tuesday...

Cantonese Dim Sum Master Chef Tony Opens Hollywood Dim Sum at TCL Chinese Theatre

March 27, 2024

March 27, 2024

Experience Exquisite Dim Sum Creations in the Heart of Hollywood 97 years after its founding, the TCL Chinese Theatre will...

Fleurs et Sel Bakery Opens Storefront in West Adams, Welcomes Customers Three Days a Week

March 27, 2024

March 27, 2024

Indulge in Freshly Baked Cookies at the New West Adams Location Fleurs et Sel Bakery, known for its delectable cookies...

Easter Specials Guide: Brunch Spots, Desserts, and More in West Los Angeles

March 27, 2024

March 27, 2024

Discover the Best Easter Eats and Treats in LA for Your Holiday Celebration Easter is almost here, so here are...

(Video) Director Adam Wingard Talks About His Influences While Making GODZILLA X KONG: THE NEW EMPIRE

March 27, 2024

March 27, 2024

Director Adam Wingard Talks About His Influences While Making GODZILLA X KONG: THE NEW EMPIRE at the Beyond Fest Screening...

Attorney for Sean “Diddy” Combs Denounces Investigation as “Witch Hunt”

March 26, 2024

March 26, 2024

Legal Representative Criticizes Probe Amid Federal Sex Trafficking Inquiry An attorney representing Sean “Diddy” Combs criticized the investigation into the...

Culver City Police Department to Conduct High Visibility Traffic Enforcement Operation

March 26, 2024

March 26, 2024

Operation Targets Hazardous Traffic Violations on the West End The Culver City Police Department announced plans to conduct a high...

Historic Union Contract Ratified by Thousands of Hotel Workers At 34 Hotels

March 26, 2024

March 26, 2024

UNITE HERE Local 11 Negotiates Agreement Ensuring Wage Increases  Hotel workers, who spearheaded the largest hotel strike in modern U.S....

Human Rights Campaign’s Los Angeles Dinner Celebrates LGBTQ+ Advocacy and Unity

March 25, 2024

March 25, 2024

Notable Figures Gathered to Champion LGBTQ+ Rights and Combat Discrimination By Aneesha Pappy  The Human Rights Campaign (HRC), the nation’s...

California Bars and Nightclubs Must Offer Drug Testing Devices Starting July 1

March 25, 2024

March 25, 2024

New Law Mandates License Holders to Provide Drug Testing Kits to Patrons Beginning July 1, establishments with Type 48 licenses...

Opinion: West Los Angeles Needs to Care about Veteran Homelessness

March 25, 2024

March 25, 2024

By Kelly Kravchuk  Veteran homelessness is a public health concern that impacts my West Los Angeles community. As a USC...

Culver City City Council Recap: Bruce Lee Alley, Historical Discrimination Study, Women’s History Month

March 25, 2024

March 25, 2024

Council Deliberates on Racial Equity, Infrastructure Upgrades, and Fire Department Strategic Plan The Culver City Council convened its latest session...