Vol. 34 No.233
       ©2007 Marianas Variety
Thursday, February 8, 2007 www.mvariety.com
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Sanchez maintains innocence in Abramoff case

By Gina Tabonares
Variety News Staff

FORMER Guam Superior Court Administrator Anthony Sanchez yesterday denied allegations linking him with disgraced Washington, D.C. lobbyist Jack Abramoff and California lawyer Howard Hills.
Sanchez pleaded not guilty in connection with the court’s $324,000 payments to Abramoff.
Sanchez, who appeared in the courtroom of Judge Arthur Barcinas along with his lawyer Mike Phillips, pleaded not guilty to the felony charges filed against him and Hills in connection with the alleged lobbying project that resulted in the disbursement of almost $500,000 from the local court.
A local grand jury charged him with unlawful influence as a third-degree felony, conspiracy for unlawful influence as a third-degree felony, theft of property held in trust as a second-degree felony, and official misconduct as a misdemeanor on Dec. 13, 2006.
Sanchez, who now works in the Office of the Governor, was in a black suit and was joined by his relatives and friends during his arraignment.
He waived his speedy trial, asked for a jury of 12, and for a copy of discovery and grand jury transcripts.
He was released on his own personal recognizance but was ordered to report to his probation officer at least twice a week.
Sanchez’s next court appearance is set on Feb. 20 at 9 a.m. in the same courtroom.
Sanchez’s alleged accomplice, Hills, was represented yesterday by Tony Perez, who asked for the continuance of the lawyer’s arraignment.
Hills, who was a legal consultant of the local court when the alleged conspiracy was made, was also indicted by the grand jury and was charged with conspiracy for unlawful influence as a third-degree felony.
His arraignment has been scheduled for Feb. 21 in Judge Barcinas’s courtroom.
Sanchez reportedly retained Abramoff in 2002 to lobby against a bill proposing to put the Superior Court under the authority of the Guam Supreme Court.
To pay the lobbyist, the local court funneled the payment of 36 checks worth $9,000 each to the account of Hills, who is based in Laguna Beach, California.
This was allegedly done to avoid the federal reporting requirements for payment transfers as this would constitute illegal “structuring” under 31 USC 5324(a).
The form of payment might also be illegal if it was used to evade federal contracting rules requiring an open tender for contracts over $10,000.
On Nov. 18, 2002, a grand jury issued a subpoena demanding that the administrator of the Guam Superior Court release all records relating to the contract.
According to Guam Public Auditor Doris Brooks, in 2002, Guam Superior Court officials sought the assistance of Abramoff, who was known for his ties with GOP congressional leaders, to block legislation before Congress that would have given the Guam Supreme Court control over the Superior Court.
The lobbying registration filed by Greenberg Traurig LLP, Abramoff’s firm, named Hills, not the Superior Court, as its client.
Procurement by sealed bid was required for purchases over $10,000 under the Prior Procurement Policy. It appears that Hills was paid in $9,000 increments to circumvent the sealed bid requirement.
The Office of the Public Auditor audit disclosed that $564,039 was spent from local appropriations to lobby a congressional measure regarding Guam’s judiciary. Although the Judicial Building Fund was not utilized to pay for the lobbying, neither the Superior Court nor the Supreme Court solicited requests for proposals.
Unlike the executive branch, the judiciary’s procurement policy allows for discretionary procurement of professional services and does not require advertisement regardless of the amount.
Hills, who earlier admitted collecting the checks for Abramoff, denied his ties with the convicted lobbyist and maintained that he only followed Sanchez’s instruction.
He, however, earlier told Variety that he met Abramoff with Judge Alberto Lamorena and Sanchez at the Signature, a restaurant in Washington, D.C. owned by Abramoff.