An official in Montgomery County, Maryland, pleaded guilty Friday to embezzling more than $6.7 million in county funds intended to help local businesses grow.
Byung Il Bang, also known as Peter Bang, was the chief operating officer of the county Department of Economic Development. Bang, 59, of Germantown, was tasked with supporting the growth of small businesses run by women and minorities, and in computer technology and biological technology.
Over the course of five years, he transferred $6,705,669 in county funds to his own bank accounts, federal prosecutors say.
“Stealing money from county taxpayers is one of the worst things that any public employee can engage in. That’s exactly what this individual has done," County Executive Ike Leggett said in a statement.
Most of the money is gone; Bang spent it in casinos across the country, prosecutors say.
Here's how the U.S. Attorney's Office for the District of Maryland says he did it.
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In 2010, the county partnered with a province in South Korea to create an incubator fund, apparently to support the growth of Korean-run businesses in the county. In July of that year, Bang incorporated a company called Chungbuk Incubator Fund LLC and opened four bank accounts in the company's name. He listed his home address as the address of the company, and gradually directed the funds to the accounts.
The Montgomery County Department of Finance transferred more than $5.4 million. The Maryland Economic Development Corporation transferred more than $1.2 million. And the Maryland Conference & Visitors Bureau transferred more than $43,000.
In addition to pleading guilty to stealing the funds, Bang admitted to failing to report the money on his taxes.
He was caught by the IRS after casinos reported that Bang cashed large checks and refused to reveal the source of the money.
Under his plea agreement, he will be ordered to return the funds. He faces as much as 20 years in prison for wire fraud and tax fraud.
Bang walked out of court free on Friday. He's set to be sentenced Feb. 22.
County officials said they will increase oversight so no one is ever able to steal this much for this long again.
EDITOR'S NOTE (Nov. 19, 2018, 4:17 p.m.): Montgomery County prosecutors previously sent a photo of another man with the same legal name as Bang. That image was shown in a video that has now been removed from this page.
