The United States Courthouse in Gualo Rai, Saipan.
FORMER CNMI Bar Association Executive Director Peonie Cabrera admitted diverting between $150,000 and $250,000 in CNMI Bar and members’ funds to her personal account for personal use.
Cabrera has been charged with fraudulently withdrawing cash from the bar association’s bank account and cashing checks owned by the CNMI Bar for her personal use.
She was also charged with making false and fraudulent representations to cause members of the CNMI Bar to make wire transfers of money into third-party payment accounts owned and controlled by Cabrera, “which money was for her own personal use.”
On Wednesday morning, before Guam Magistrate Judge Michael J. Bordallo in federal court, Cabrera pled guilty to two counts of bank fraud and two counts of wire fraud.
Judge Bordallo found Cabrera to be fully competent to enter a knowing and voluntary plea, and accepted the plea of guilty.
She was represented by attorney Richard Miller, while Assistant U.S. Attorney Eric O’Malley appeared for the federal government.
Judge Bordallo scheduled a sentencing hearing for Aug. 16, 2024, at 8:30 am.
The judge informed Cabrera that she will remain released on her own personal recognizance, but must surrender her passport to the U.S. Marshals Service.
The judge also ordered the plea agreement to be unsealed.
According to the plea agreement that Cabrera signed, during the period beginning January 2019 to December 2023, the CNMI Bar Association maintained one trust and one checking account at the Bank of Hawaii and one savings account at the Bank of Guam.
The CNMI Bar never authorized Cabrera to sign checks or otherwise move the money held in the CNMI Bar’s accounts at BOH and BOG without the CNMI Bar’s approval.
“On or about September 20, 2019, Defendant falsified a document and submitted it to the BOG, and thereby gained access as an authorized signatory for the [CNMI Bar’s] BOG savings account,” the plea agreement stated.
“Beginning on or about April 4, 2019, and continuing to on or about May 4, 2023, on approximately 30 occasions, Defendant knowingly and intentionally presented fraudulent payroll documents and paychecks for signature by [CNMI Bar] board members, which checks were drawn upon [the bar’s] BOH operating account and made payable to Defendant, which money she took for her personal use.
“Beginning on or about September 27, 2019, and continuing to on or about March 12, 2020, Cabrera withdrew cash from [the bar’s] BOG savings account on approximately 13 occasions, which money she took for her personal use.
“On or about April 14, 2020, and continuing to June 11, 2021, Defendant used money from [the bar’s] BOH operating account to make about 132 payments to her personal PayPal account, which she took for her personal use.
“On or about August 12, 2020, and continuing to June 15, 2021, Defendant used money from [the bar’s] BOH trust account to make about 22 payments to her personal PayPal account, which she took for her personal use.
“On or about June 18, 2021, and continuing to on or about June 26, 2021, Defendant provided false information and diverted fee payments from [CNMI Bar] members for an educational course to her Square Sales Reports account on approximately 4 occasions, which money she took for her personal use.
“On or about November 22, 2020, and continuing to on or about February 24, 2023, Defendant provided false information and diverted annual fee and other payments from [CNMI Bar] members to her personal Swipe Simple account on approximately 86 occasions, which money she took for her personal use,” the plea agreement stated.
“The United States and Defendant stipulate and agree that the loss amount was greater than $150,000 but less than $250,000.”
