The businessman, who declined to be identified, said he has been a constant donor to the school because “I believe they can help nurture our new generation” in the commonwealth.
But he said he later found out that the school was lying about its enrollment figures.
In one of the documents obtained by Variety, the school claimed in 2008 that it has 200 Chamorro-U.S. citizen students and 22 Koreans; 14 faculty members, three of whom were U.S. citizens and 11 Koreans; and five Korean staffers.
In 2009, the document stated the school had 300 Chamorro-U.S. citizen students and 50 Koreans; five U.S. citizen teachers and 20 Korean teachers; and eight staffers, all of whom were Koreans.
The school actually had no Chamorro students and no U.S. citizen teachers, the businessman said.
Variety learned the school is only open every Saturday for a three-hour class.
This reporter called school president El-Sook Lee but he didn’t pick up his phone.
Local lawyer James S. Sirok, in a legal opinion dated April 25, said “such action is criminal in nature, and constitutes a crime for which both the corporation and the individuals signing the required tax application on behalf of the corporation, is liable,” referring to the school.
He added, “It may be found that this conduct is criminal in nature and that it was perpetrated for the benefit of the corporation by its officers and directors, does not mean that the corporation itself is not criminally liable. It is long recognized that a corporation, as a legal entity, is also liable for criminal conduct and can be persecuted for a crime.”
The lawyer said the crimes would be considered CNMI and federal crimes, and would include perjury and tax evasion charges.
“These are very serious crimes for which the corporation could be fined, and the individuals involved could be fined and given jail sentences. If these individuals are not U.S. citizens, in addition to fine and jail time, they could be deported back to their home countries,” Sirok said.
Variety learned that the Internal Revenue Service denied the request of the school to expedite its application for a tax exemption.
The businessman said when the school was established in 1982, the South Korean government donated $150,000.
Every year thereafter, the Korean government gave the school $10,000, he added.
Today, school officials and board members are expected to meet South Korean Consul Park Hyun Soo during his two-day visit on Saipan.
The businessman said the South Korean government may not have any information about the “irregularities” committed by the school.
The businessman said the Office of the Public Auditor is now looking into his complaint.
Rep. Joseph M. Palacios, R-Saipan, earlier mentioned that a private school on Saipan was abusing the ETC program. He did not disclose the name of the school but said he had already asked OPA to conduct an investigation.
