published on July 19, 2017 - 9:05 AM
Written by Associated Press

(AP) — The former director of South Korea’s earthquake research center was convicted in federal court of laundering more than $1 million in bribes, prosecutors said Tuesday.

Heon-Cheol Chi, 59, was convicted Monday of taking more than $1 million in bribes from companies in Pasadena and England and funneling proceeds through U.S. banks.

Chi abused his government position with the Korea Institute of Geoscience and Mineral Resources by providing insider information to seismological companies doing business in South Korea in exchange for kickbacks.

“The American financial system is not to be used as a storehouse for the proceeds of corrupt activity,” Acting United States Attorney Sandra R. Brown said. “This conviction sends a message that should be heard around the world.”

Chi was convicted of a single count of transacting in criminally derived property, which carries a maximum sentence of 10 years in federal prison, prosecutors said. Jurors in U.S. District Court could not reach verdicts on five other money laundering counts.

Chi directed bribes to be paid in cash or wired to a bank in Glendora, California. He transferred half those bribes to a New York City investment account and spent most of the remaining funds in South Korea.

He is scheduled to be sentenced Oct. 2.


e-Newsletter Signup

Our weekly poll

Is your company participating in the federal payroll tax deferral program?

Loading ... Loading ...

Central Valley Biz Blogs

Popup
shares

3/5

Article views

remaining

Sign up icon

To continue website access to

TheBusinessJournal.com

please create a FREE account OR login here.

1/5

Article views

remaining

SKIP THE POP-UPS
For only $59 for one 1-year you will receive the Print edition along with EVERYTHING The Business Journal has to offer digitally, PLUS you will have unlimited 24- hour a day access to view articles at

TheBusinessJournal.com

Use Promo Code

*New Subscribers Only

Digital and Print

XX Days Remaining

until you can view 5 more free articles

Sign up icon

Want access? Subscribe now & save $20 OFF.

Use Promo Code

WEBSUB20

* NEW SUBSCRIBERS ONLY