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persons had only a vague idea of the terms under which they received funds.
One thought he was supposed to return the money to Pak or the church once the
stock was sold. They received no promissory notes as evidence of any loans, nor
was there any mention of a "pension fund." None knew the source of the funds
provided by Pak.
Use of the Diplomat National Bank
The opening of the Diplomat National Bank gave the Moon organization the
opportunity to exercise great influence-if not outright control--over a newly
organized American bank. Bank chairman Charles Kim told the subcommittee
that he was unaware of Pak Bo Hi's close connection with Moon when they
discussed the stock purchases. However, after the bank opened, he said Pak
requested that he segregate a number of proxies. They belonged to UC
members who had bought stock with the money provided by
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Pak. Instead of being mailed to the individuals, they would presumably be
delivered by Pak. (595)
The Moon Organization's ability to influence and control the DNB was
enhanced by opening the UCI account, which made it one of the single largest
depositors.
596
Pak and Moon denied any intention to control the DNB, and said
the decision to move the UCI account to Washington was made for other
reasons. According to Moon, it was because UCI was located in Washington.
(597) However, UCI stationery showed its location to be Tarrytown, N.Y.; nor
was UCI incorporated in Washington until February 1977.
Whatever the reasons for opening it, the account satisfied one of Moon's
purposes for wanting to establish an international bank: "so that the currency will
be freely coming back and forth." (598) Over $7 million went into the UCI from
December 1975 to March 1977. The money was disbursed largely among other
entities in the Moon Organization. Payments to News World and the Moon fishing
companies alone accounted for over $2,710,000. Other payments went for legal
fees for Pak Bo Hi, Moon, and other church officials; a recording studio owned by
Pak ($30,000); $200,000 to KCFF's branch accounts in Korea, including $50,000
to one of UCI's directors, Kim Won Pil (also president of I1 Hwa Pharmaceutical);
and payments to other Moon organization business ventures. (599)
In addition to the UCI account, Pak had several KCFF accounts moved to the
Diplomat National Bank in early 1976.
Shortly after the bank opened in December 1975, Pak applied for $250,000 in
loans, the proceeds of which were to be wired to Korea for construction of the
performing arts center for the Little Angels. One loan for $100,000 went to Pak
himself; it was secured by shares in "Grace and Park Corp.," the corporation
formed by Pak and his wife to hold title to their real estate (property substantially
encumbered by mortgages). The other loan ($150,000) was for the KCFF and
was secured by KCFF accounts at the Diplomat National Bank--accounts which
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