 |
 |
 |
 |
|
 |
 |
77
Pak Bo Hi 5~9 and transfers to the KCFF office in Seoul. (560)
Another use to which the Moon Organization's funds were put was as
collateral for a series of loans negotiated by Pak Bo Hi on behalf on the KCFF.
These loans were for construction of a "Performing Arts Center" in Seoul for the
Little Angels.
561
At a meeting on August 20, 1971, the KCFF board of directors resolved to
explore ways of attracting funds for this purpose. Land had been acquired at an
attractive location in Seoul through the efforts of Pak, Yang You Chan, and Kim
Chong Hoon, who spoke to Korean Government officials to obtain the necessary
permits to enable the KCFF to begin construction on the site.
562
In early 1974, Pak Bo Hi made inquiries at the Chase Manhattan Bank, where
Moon and the UC had accounts, about a loan to the KCFF to finance the
construction of the center. Pak was turned down. In July 1974, he obtained a
$250,000 loan from a Los Angeles branch of the Bank of America. Moon
provided the collateral for the loan by pledging funds on deposit in his own name
at Chase Manhattan.
563
In September 1974, Pak revealed the Bank of America loan to the KCFF
board of directors. The KCFF minutes for September 3, 1974 say that Pak got
the board to ratify an additional $250,000 loan from the Commercial Bank in
Seoul, Korea.
564
Both Charles Fairchild and David Martin told subcommittee
staff that the loan was ratified on the express condition that Pak take out no
further loans without advance approval by the board because they did not think
that the KCFF could carry such a heavy debt load. That condition did not appear
in the minutes, which Fairchild claimed were altered by Pak.
The $250,000 loan from Bank of America was for 1 year. When the bank
asked Pak for repayment in full in June 1975, the KCFF was in no position to do
so. Pak asked for an extension, which was refused, and Bank of America
collected Moon's collateral. Bank of America officers told subcommittee staff that
their decision to call the loan in 1975 reflected second thoughts about making
such a loan in the first place, given the uncertain status of KCFF and the fact that
the loan was for a construction project in Korea.
Pak then turned to Chase Manhattan and, in a complex series of transactions,
managed to borrow $250,000, again using as collateral additional funds on
deposit in Moon's name at Chase. In connection with this loan, Pak submitted to
the bank "corporate resolutions"
375
attested to by Judith LeJeune as Secretary of the KCFF, which indicated that the
KCFF's board of directors had approved the loan. This approval had in fact not
been given.
565
Pak used the proceeds of the Chase Manhattan loan to repay Moon the
collateral he lost on the defaulted Bank of America loan. In 1976, KCFF was
unable to repay Chase Manhattan for the new $250,000 loan and interest, and
Pak negotiated a 1-year extension, or "rollover." However, when it came due in
|
 |
|