Immigration Fraud—Seattle

Six Koreans have been indicted for allegedly orchestrating a scheme to lure Korean investors to the United States to receive janitorial franchises and lawful immigration status.^[1] According to Immigration and Customs Enforcement [hereinafter ICE], the individuals invested tens of thousands of dollars in the scheme but did not receive the promised proceeds; instead, they were put to work cleaning offices under the guise of receiving “training.”^[2]

Last month, Kook Jin Kim and his wife Yung Jung Lee were arrested in Seattle by ICE agents on charges that included visa fraud and identity fraud.^[3] A few days ago, Jung Kwang Kim (aka Danny Kim, who is the suspected ringleader) and his wife, Hoo Yun Lee were arrested in Moreno Valley, California on an indictment from the Western District of Washington; also named in the indictment are Hee Soon Kim and Mun Goo Lee, who are still at large and are being sought by federal authorities.^[4]

According to ICE, Danny Kim “used word-of-mouth and advertisements in South Korean newspapers to sell janitorial franchises purportedly giving buyers exclusive cleaning contracts for major commercial buildings” in the Seattle area; at least one “investor” was contractually promised $33,000 a month in income.^[5] The advertisements also promised legal permanent residency in the US.^[6]

Danny Kim is charged with three counts of wire fraud, and one count each of visa fraud, identity fraud, and making a false statement; Hoo Yun Lee is charged with one count each of false statements, visa fraud, and identity fraud.^[7]

Visa Fraud
Under 18 U.S.C. § 1546(a), it is a crime for a person to knowingly counterfeit, alter, or falsely make any immigrant visa for entry into the United States. It is also a crime to use, possess, obtain, accept, or receive such a visa, knowing it to have been procured by fraudulent means.

The punishment for a violation of section 1546 is a fine, and, in this scenario, up to 10 years in prison, or both.^[8]

Identity Fraud
Under 18 U.S.C. § 1028(a)(1), it is a crime for a person to knowingly and without lawful authority produce an identification document or a false identification document if the document is or appears to be issued by the United States.

The punishment for violating section 1028(a)(1) is a fine, imprisonment for up to 15 years, or both.^[9]

False Statements and Wire Fraud
We have previously discussed making false statements here, and we have discussed wire fraud here.

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[1] Immigration and Customs Enforcement, Press Release: Five Members of Seattle Family Among Six Charged in Financial and Immigration Fraud Scheme, Oct. 17, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] If the offense is committed to carry out an act of international terrorism, the sentence can be as high as 25 years. If it is committed to facilitate a drug trafficking crime, the sentence can be as high as 20 years, and if it is neither of those situations, nor is it a first or second offense, then the prison sentence can be as high as 15 years.
[9] 18 U.S.C. § 1028(b)(1).