Rockford Lee Zietzke, Northern Marianas Fisheries Inc. and Crystal Seas CNMI Inc. with their counsel F. Matthew Smith, filed the complaint for permanent injunction declaratory relief and damages against Glenn H. Manglona, Elizabeth C. Manglona, and Aeksey Koslov.
The plaintiffs are asking the court to order the defendants to prevent active participation in any of the business matters.
According to the complaint, Courtney Zietzke, brother of plaintiff Zietzke from Washingtone state, wanted to start a commercial long line fishing business in the Marianas in June 2004.
The complaint stated that Glenn Manglona, then employee of the Department of Commerce, abused his position to gain advantage for himself by convincing Courtney that they should go into business together.
He then helped Courtney establish Crystal Seas and Northern Marianas Fishing as commonwealth corporations.
The complaint stated that Manglona filed the annual corporation reports for Crystal Seas and NMF from 2006 to 2008.
The complaint stated that Elizabeth Manglona, under MBASS Enterprises, was the guarantor of the Independence Bank Loan but did not pledge any collateral or any mortgageable assets.
Elizabeth Manglona was paid by the corporations $1,600 a month, “performing little or no work to justify the monies she received from the corporations.”
On May 18, 2008, the two corporations notified Elizabeth Manglona that her subscriptions had been cancelled.
The records showed that Courtney began communicating with respondent Koslov on Oct. 2007 to make an investment or loan to the corporations.
Koslov agreed to make an investment of $200,000 in Crystal Seas and NMF and the amount was to be given in two payments — $60,000 for the first and the remaining $140,000 will follow.
Koslov only paid $60,000 but never completed paying the balance as required by the contract.
The contract was cancelled on June 24, 2008.
The defendants said that Koslov lied in court when he denied that there was no written agreement and the contract was worth $60,000 only, not $200,000.
For Glenn Manglona’s part, the defendants said he was allowed to manage both corporations for a salary of $3,000 a month but “Manglona instead paid himself $6,000 a month plus his wife Elizabeth’s salary of $1,600 a month, both of which were not approved by the corporations.”
The complaint said that Manglona misappropriated funds for his personal expenses and did not do his duty which led to the “damage of the corporations”.
Crystal Seas and NMF were granted a temporary restraining order against the Manglona couple on May 24, 2008 and both corporations terminated their relationship with Manglona.
