U.S. Department of Defense Employee in Korea Pleads Guilty to Illegally Obtaining More than $141,000 in Government Housing Allowance Funds

A civilian employee of the U.S. Department of Defense’s 501st Military Intelligence Brigade pleaded guilty today in the Eastern District of Virginia to illegally obtaining over $141,561 in Living Quarters Allowance (LQA) funds.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Deputy Assistant Inspector General for Investigations Stanley A. Newell of the Defense Criminal Investigative Service (DCIS), Director Frank Robey of the U.S. Army Criminal Investigative Command’s (CID) Major Procurement Fraud Unit and Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office made the announcement.

Koo Hyung Jung, 61, of Fairfax, Virginia, pleaded guilty to one count of knowing conversion of government property before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.  Jung will be sentenced on July 1, 2016.

According to admissions made in connection with his plea, in 2008, 2010 and 2012, Jung submitted false documents in order to obtain LQA funds from the Department of Defense.  Jung then converted the funds to his own personal benefit, contrary to the applicable regulations, allowing him to obtain government funds without paying the requisite taxes on the lump sum LQA payments, he admitted.

DCIS, CID and the FBI are investigating the case with assistance from the FBI Legal Attaché Jin W. Kim in the Republic of Korea and the Justice Department’s Office of International Affairs.  Trial Attorneys Richard B. Evans and Justin D. Weitz of the Public Integrity Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia are prosecuting the case.