Randall T. Fennell, with his attorney Mark B. Hanson, is asking for a jury trial.
He wants the court to award him judgment against the defendants for actual, general, special and compensatory damages in an amount to be determined at trial, for punitive damages for defendants’ intentional, wanton and malicious conduct, for attorney’s fees and insurance proceeds spent in defending claims by the now defunct Marianas Public lands Authority and in seeking action from the Attorney General’s Office.
He is also asking for a temporary and permanent injunction against the AGO from representing parties in or participating in the lawsuit, for attorney’s fees and costs and other legal relief the court deems just and proper.
In his complaint, Fennell stated that in 2001, about 88 percent of the common shares in the Bank of Saipan Inc. were owned and controlled by the Tan family, JLH Pacific Trust managed by bank board members David Lujan and Barry Israel, and the Guam-based Calvo family.
The plaintiff said since 2001 up to the time they were arrested by federal officials in April 2002, a group of purported investors was attempting to purchase a controlling interest in the bank.
The plaintiff said as a result of the negotiations, the board of directors entered into agreements with the Montgomery group but when its members were arrested on charges of conspiracy to defraud the bank, the public confidence in the bank was shaken.
In April 2002, the bank was unable to repay over $6 million to MPLA.
In April of 2002, Fennell was approached by the AGO and the Department of Commerce and requested that he act as receiver for the bank.
He agreed to be the temporary receiver for a period not to exceed 30 days which was later extended.
He conducted an investigation as temporary receiver and unearthed discoveries that were “shocking.”
The plaintiff stated that there was an attempt to convince MPLA and the Retirement Fund that their almost $14 million deposits with the bank was secure, as stated in the pledge letters signed by Gov. Benigno R. Fitial, acting as then-president, chief executive officer and chairman of the bank’s board.
This claim was fraudulent, Fennell said.
He added that his investigation uncovered evidence that the board, particularly Fitial, had actual knowledge of the involvement of the Montgomery group in a fraud perpetrated on the First International Bank of Grenada, and that board members had lied to federal investigators about this knowledge prior to the arrest of the Montgomery group.
Fennell said the bank suppressed a report by its own attorneys on the liability of the directors and major shareholders for their roles in the purported sale of shares to the Montgomery group.
On Sept. 27, 2004, the bank sued Fennell and others for acts he took as temporary receiver.
The AGO was assigned to represent him.
In August 2005, MPLA intervened with the lawsuit as depositor of the bank.
The Superior Court granted MPLA’s motion to intervene and on Oct. 12, 2005, MPLA through its then-counsel, Gregory, filed a separate complaint against Fennell.
Subsequent to MPLA’s dissolution, the AGO headed by Gregory took over representation of the MPLA in its lawsuit against Fennell despite the fact that the AGO was then representing Fennell in the lawsuit where Fennell was being sued by MPLA.
Fennell said the defendants conspired and caused him to be deprived of the constitutional rights and as a result of the their unlawful and malicious actions, Fennell has been damaged in an amount to be proven at trial.
