By Bryan Manabat
[email protected]
Variety News Staff
ATTORNEY Sean Frink said the settlement ending the CNMI government’s case against his client, Henry Sablan Hofschneider, was “the right and fair decision for everyone,” arguing that his client had been legally entitled to the annual leave payout at the center of the dispute.
Frink said the settlement agreement “is self-explanatory,” pointing to a May 5, 2023, opinion issued by the attorney general — referenced in the agreement and provided with his statement — which determined that Hofschneider and 14 other Saipan Mayor’s Office employees were entitled to the lump sum leave payments the government later challenged.
“While some in the government may complain that the new mayor did not sign off on the payment to these 15 employees, that doesn’t negate the fact that Mr. Hofschneider was legally entitled to his lump sum payout and that he didn’t receive one penny more than he was entitled to,” Frink said.
He added that Hofschneider agreed to repay the money only to avoid prolonged litigation.
“Rather than spend the Commonwealth’s and his time and resources litigating the case, Mr. Hofschneider agreed to pay the money back if the CNMI agreed to reinstate his annual leave and dismiss the case, which is exactly what happened with this settlement,” Frink said.
Frink said his client appreciated the Office of the Attorney General for resolving the matter in a “reasonable manner.”
The attorney general’s opinion, signed by then–Deputy Attorney General Lillian Tenorio, stated that 1 CMC § 82604 does not apply to municipal employees. “As such, municipal employees are excluded from the reemployment embargo even though they received a lump sum annual leave payment from the municipal government upon their separation from employment. They are permitted to be employed by the Commonwealth government without having to wait out a period of time equal to the annual leave payout from the municipal government,” Tenorio wrote.
Charge dismissed with prejudice
The Office of the Attorney General dismissed with prejudice the misconduct in public office charge against Hofschneider after he agreed to repay $15,000 to the Saipan Mayor’s Office under a civil settlement approved Monday by Superior Court Associate Judge Kenneth L. Govendo.
Assistant Attorney General Olga Kelley said Hofschneider accepted the Commonwealth’s offer and entered into a civil compromise, prompting prosecutors to seek dismissal of the charge.
Hofschneider had been charged with one count of violating 6 CMC § 3202(b)(1), misconduct by a public employee.
The charge stemmed from a broader case filed last year in which the OAG’s Criminal Division accused Hofschneider, Larissa Sablan Flores, Teresita Borja Camacho, and Eloida Dela Cruz Macaranas of improperly processing lump sum annual leave payments for 15 current and former mayor’s office employees.
Prosecutors alleged that Hofschneider’s lump sum leave payout of $14,517.09 — along with payments to 14 others in May and June 2023 — was processed without required personnel action forms, expenditure authority signatures, or review by the Office of Personnel Management. Hofschneider denied the allegations.
Settlement terms
Under the agreement, Hofschneider will repay $15,000 in installments of $416.66 over 36 months beginning March 15, 2026. Late payments will accrue 9% annual interest.
In return, the OAG agreed to dismiss the case with prejudice and not pursue further criminal, civil, or administrative action related to the conduct described in Criminal Case 25-0070. The OAG may still enforce collection of any unpaid balance.
The settlement reinstates Hofschneider’s 335.5 hours of annual leave to his government leave account. He is currently employed in the Governor’s Office and will be allowed to use or cash out his leave like any other CNMI government employee, without a cap on accrual.
“Hofschneider has continued to accrue annual leave while working in the Governor’s Office and should not be penalized for agreeing to reinstate his previously paid-out leave pursuant to this agreement,” the document states. The agreement also specifies that Hofschneider is not convicted of any crime.
Co-defendants
According to court filings, Hofschneider — then special assistant to the lieutenant governor — and Flores — then administrative manager to the lieutenant governor — were accused of appropriating $98,379.65 from the Saipan Mayor’s Office account between May 19 and June 28, 2023, without the mayor’s expenditure authorization. Both are senior aides to Gov. David M. Apatang and previously worked at the mayor’s office when Apatang served as mayor.
Camacho, the former budget officer, was charged with two counts of misconduct in public office. Prosecutors alleged she appropriated $38,279.53 for her own use between June 2 and June 28, 2023, and failed to notify the mayor or the human resources manager.
Misconduct in public office carries a maximum penalty of 10 years in prison and a $50,000 fine.
Flores also faces one count of possession or removal of government property, punishable by up to six months in prison, for allegedly removing personnel files of former mayor’s office employees.
Macaranas, a payroll manager at the Department of Finance, was accused of processing unauthorized payments totaling $98,379.65. She faces up to two years in prison and a $1,500 fine.
Flores and Macaranas have denied the allegations. No updated court information was available for Camacho.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
