SU’s Park found guilty

Due to “overwhelming evidence,” a federal jury has found Saipan University founder Soon Kyung Park guilty on all three counts of fraud charges relating to the recruitment and transport of Chinese students to Saipan last year.

U.S. District Court judge Alex Munson also directed the forfeiture of three bank accounts that contained no less than $500,000 that were found to have been derived from the fraudulent activities of Park.

Munson set Park’s sentencing on Dec. 14, 2004 at 9am. Park remains under the custody of the U.S. Marshals.

The Chinese students, a fraction of whom remains on Saipan on temporary work authorizations, were not present during the announcement of the guilty verdict. It was not immediately known why they were not around, although they were present during the earlier stages of the trial. They were represented by their lawyers yesterday morning.

The 10-day trial built up the prosecution’s charges that Park “unlawfully, knowingly, and willfully—having devised…a scheme to defraud and for obtaining money by means of materially false and fraudulent pretenses, representations, and promises—transported and caused to be transported, and induced persons to travel in, and be transported in interstate and foreign commerce in the execution of a scheme to defraud on Sept. 8, 2004, Sept. 27, 2003, and on Oct. 5, 2003.”

Park, founder and member of the defunct SU’s Board of Director, was indicted for engaging in schemes that defrauded Chinese students concerning the nature of SU’s course offerings and the students’ chances of getting jobs while studying in the CNMI so he could obtain tuition and fees from them. CNMI regulations prohibit the employment of foreign students.

On Sept. 8, Park brought in 53 students from the People’s Republic of China to the CNMI “for a work-study program.” He brought in eight more on Sept. 27, and an additional 35 on Oct. 5

Based on court evidence, Park told the students that SU had more than 20 degree programs when, in fact, the fledgling institution was only allowed to provide non-credit courses such as conversational English, writing, and computer laboratory.

Evidence presented in court also showed that Park misled the students into believing that SU was equipped with modern facilities such as computer rooms, a golf course, and a restaurant.

Upon arriving, however, SU students complained of rundown facilities, poor living conditions, and lack of water and power, among others.

The prosecution, led by Assistant U.S. Attorney Patrick Smith, said there is “overwhelming evidence” that showed that Park obtained money from the students through wire transfer from China to the CNMI.

The three bank accounts that were ordered forfeited include all U.S. currency funds or other monetary instruments credited to account No. 0103-142160 in the name of Tinian University and 0103-150257 in the name of Saipan University, both at Bank of Guam-Saipan branch, as well bank account No. 0032293794 in the name of former SU president Jesus I. Taisague, located at Bank of Hawaii, Saipan.

In convicting Park of the three fraud charges, the jury said that the loss exceeded $400,000, the offense was committed through mass marketing, there were at least 50 victims, and a substantial part of the fraudulent scheme was committed from outside the U.S. and that the offense involved sophisticated means.

Park’s lawyer, Joseph Aldan Arriola, said he was disappointed with the jury’s decision, especially since it was so quick.

“We’re disappointed. The deliberation didn’t take that long. But you’ve got to respect the jury’s decision,” he said.

Both parties held their closing arguments yesterday morning. At 3pm, the jury came back with its decision.

Jury member Bill Olaitima explained that there was no need to delay the verdict because there was too much evidence pointing to Park’s guilt.
“The evidence is overwhelming and everybody agreed with the decision,” he said.