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88
ROK Government in the Diplomat National Bank and that he never discussed the
bank with an official of the Government. He surmised, however, that it was
"highly conceivable'' that Kim would have tried to interest the Government in the
bank: Korea "is a country where, if you want to do well, undoubtedly you should
have a blessing from the political sector, especially people in power * * *." (612)
Tongsun Park also stated that, at the time of his investment in the Diplomat
National Bank, he was unaware that Rev. Moon and followers were also buying
stock.
385
Summary
The Moon Organization directly provided at least $1,078,000 to purchase
shares in the Diplomat National Bank's original stock issue. This was about 45
percent of the eventual capitalization of $2,424,525 and represented 43,120
shares. In addition to funds directly provided, $207,000 worth of stock was
purchased by Unification Church members or persons with clear ties to the Moon
Organization or persons with family ties to Pak Bo Hi, to whom he strongly
recommended the investment. These funds derived from private sources or from
obscure sources which could not be definitively linked to the Moon Organization.
The subcommittee found no evidence of collaboration between Tongsun Park
and the Moon Organization in the purchase of stock.
Both the Moon Organization and Tongsun Park used similar methods to avoid
the 5-percent limitation on stock purchases by a single individual or organization.
Park bought $250,000 of stock in the names of his business associates, using
funds from one of his companies. The Moon Organization, though it financed its
purchases in several ways, principally bought its stock--$738,000 worth--in the
names of 13 church members. Pak Bo Hi coordinated their investments and paid
for the stock in cash which he said he received from the "Unification Church
Pension Fund International.'' The subcommittee was unconvinced that such a
fund was ever established or used for that purpose. Both Tongsun Park and Pak
Bo Hi characterized the transfer of funds to purchasers as no-interest, no-
collateral, 10-year loans.
In September 1977, the SEC charged Tongsun Park, Pak Bo Hi, and the
Diplomat National Bank with securities violations arising from the bank's
representations that no individual owned or had a beneficial interest in more than
5 percent of the bank's stock. The SEC charged that Tongsun Park had bought
approximately 10 percent through three nominees, and Pak Bo Hi approximately
43 percent through 18 nominees. The charges were eventually settled by
consent decrees.
The SEC complaint was filed prior to the disclosures by Pak Bo Hi and
Charles Kim in testimony they made under grants of immunity. Pak in effect
denied that he had been acting as an individual in the purchase. Although Pak
was unable to name any legal entity in control of the fund, he suggested that the
Unification Church or some other component of the Moon Organization was the
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