The Korea Institute of Geoscience and Mineral Resources ("KIGAM") was a government-funded geoscience research institute in South Korea that, among other things, provided testing and certifications for seismological equipment sold to and used by government customers and other end users in South Korea . In addition, KIGAM also purchased equipment directly from companies for its own research activities.
Heon-Cheol Chi was a citizen and resident of South Korea, who served as a principal researcher at KIGAM, and later as Director of KIGAM's Earthquake Research Center.
According to the allegations in the indictment, from about 2003 through 2015, Chi demanded and received bribes from two companies, one of which was Guralp Systems Limited, a U.K. company that designed and manufactured broadband seismic instrumentation for customers worldwide. The bribes were made in exchange for Chi using his position at KIGAM to extend preferential treatment and otherwise help the companies successfully sell their products in South Korea. In all, Chi received approximately $650,000 from Guralp Systems Limited and approximately $386,000 from the second unnamed company.
On December 12, 2016, the DOJ filed a two-count indictment in the Central District of California agianst Chi alleging money laundering violations. On April 12, 2017, the DOJ filed a superseding indictment adding four more counts of money laundering. After a four-day trial in July 2017, the jury convicted Chi of one count of money laundering, and the DOJ subsequently moved to dismiss the remaning counts. On October 2, 2017, the court sentenced Chi to 14 months in prison to be followed by one year of supervised release. The court also ordered Chi to pay a fine of $15,000 plus a mandatory assessment of $100.
On October 13, 2017, Chi filed an appeal of his conviction to the Ninth Circuit Court of Appeals. On August 30, 2019, the Ninth Circuit affirmed Chi's conviction. On October 15, 2019, Chi filed for a rehearing en banc, which the court denied on November 19, 2019.
