The plaintiffs, who refused to disclosed their names “due to concerns relating to personal safety and fear of persecution for exercising their rights,” said that as retirees, they are entitled to full retirement benefits and are entitled to bring an action against the CNMI “in order to enjoin the expenditure of public funds for…a breach of fiduciary duty.”
In their 13-page complaint for declaratory/injunctive relief and for damages dated June 24, the plaintiffs are asking the court to command the U.S. Marshals Service or other federal entities or officials to seize assets owned or controlled by the CNMI government to ensure payment of its debt to the Retirement Fund in full.
The plaintiffs, through their counsel Bruce L. Jorgensen, are asking the court for relief against the defendants.
They want the court to issue an order declaring CNMI Public Law 15-15 unlawful, an injunctive relief in aid of protecting the interests of the plaintiffs and similarly situated retirees, and an order compelling U.S. officials to start an investigation as to whether federal laws and regulations have been violated by the CNMI and CNMI defendants identified only as “Does.”
This complaint mentions unlawful misconduct relating to business, financial, securities and interstate financial dealing between the Retirement Fund, the Bank of Saipan and others.
The plaintiffs are asking for monetary damages, punitive damages assessed against the defendants, attorney’s fees and costs, and other relief the court deems legally warranted.
The plaintiffs said there was the possibility that CNMI-obligated Retirement Fund payments had been diverted from retiree-beneficiaries to payments of CNMI-delinquent capital improvement project contributions.
They said the CNMI remains substantially delinquent in the monies owed to the Fund, and that the CNMI defendants have opted to direct payment of CNMI funds to other persons rather than paying its long delinquent CNMI debt to the Fund for the benefit of Fund beneficiaries.
They said since 2003, the Fund’s assets, financial standing, viability, potential for growth and related interests of CNMI retirees have markedly deteriorated as a consequence of the defendants’ actions.
They said the defendants have economically harmed the viability of the Fund and conspired to obstruct justice.
Jorgensen said the lawsuit was initiated at the request of a core group of “extraordinarily concerned CNMI retirees in an effort to preserve the rights of all CNMI retirees/Fund beneficiaries.”
“This federal court proceeding essentially provides those retirees…with direct control over both the litigation and prospective administration compromise/dilatory aims,” Jorgensen said.
The Retirement Fund has sued the CNMI government in the local trial court which is now determining a payment schedule.
The CNMI government owes the Fund over $200 million in unpaid employer contributions and over $500 million in unfunded liabilities.
