By Bryan Manabat
[email protected]
Variety News Staff
A FORMER CNMI Public School System employee, Giselle Butalid, is expected to plead guilty to federal fraud charges, according to Assistant U.S. Attorney Eric O’Malley.
On Monday, O’Malley requested the District Court for the Northern Mariana Islands to schedule a change of plea hearing for Butalid, who, along with her mother, Clarissa Adlawan, was indicted on multiple counts including conspiracy, theft of federal funds, money laundering, and structuring financial transactions.
The court granted the motion and set the hearing for Oct. 14 at 1:30 p.m. before Chief Judge Ramona V. Manglona.
“In light of the plea agreement signed by the parties and filed with the court on October 6, 2025, the United States of America, by and through undersigned counsel, hereby moves this court to set this matter for a change of plea hearing on Tuesday, October 14, 2025, at 1:30 p.m.,” O’Malley stated.
The plea agreement remained sealed as of Tuesday afternoon.
The indictment outlines a complex scheme that allegedly defrauded PSS of tens of thousands of dollars in federal grant money.
According to court documents, Butalid — a U.S. citizen and former employee of PSS Office of Curriculum and Instruction — and Adlawan, a Philippine national residing in the CNMI, used their company, One Legacy LLC, to submit fraudulent invoices and quotations for educational materials. The company, registered in January 2021, was allegedly used to funnel federal funds through falsified procurement documents.
Butalid faces one count of conspiracy, five counts of theft concerning programs receiving federal funds, and one count of money laundering conspiracy.
Adlawan faces one count of conspiracy, five counts of theft concerning programs receiving federal funds, one count of money laundering conspiracy, one count of illegal monetary transaction, and four counts of structuring.
The indictment states that Butalid exploited her position at PSS to forge documents, fabricate vendor quotations, and authorize sole-source procurements for One Legacy. The company then received payments for educational materials that were either never delivered or misrepresented.
Prosecutors also allege the defendants laundered the proceeds through frequent cash withdrawals, ATM transactions in the Philippines, and luxury purchases, including stays at high-end hotels and shopping sprees at Prada and Louis Vuitton.
The charges seek forfeiture of assets tied to the alleged crimes, and substitute property if the original assets cannot be recovered.
Adlawan’s jury trial date of Oct. 21, 2025 has been rescheduled for Jan. 13, 2026.