During his initial appearance and arraignment, Arriola, 42, pleaded not guilty to conspiracy to commit wire fraud, wire fraud, money laundering conspiracy, and two counts of money laundering.
U.S. District Court for the NMI Chief Judge Alex Munson remanded Arriola to the custody of the U.S. Marshals Service after he denied bail without prejudice.
Arriola is a substantial flight risk, Munson noted.
Assistant U.S. Attorney Kirk Schuler, who represented the federal government, said Arriola was a “fugitive for over a year.”
Munson also asked Arriola regarding the veracity of his financial affidavit stating that the lawyer qualified for a court-appointed attorney.
Steven Pixley, Arriola’s court appointed counsel, said he will file a bail modification motion next week.
Munson set Jan. 25, 2010 for Arriola’s jury trial.
Pixley disclosed to the court a potential conflict following his appointment as Arriola’s attorney.
Pixely said he represented the CNMI Bar Association in its disbarment case against Arriola sometime in 2007.
But Arriola waived any potential conflict and retained Pixley as his defense attorney.
Arriola fled the CNMI after the U.S. government indicted him and now convicted former estate administrator Luis Kaipat Pelisamen for wire fraud and money laundering involving $625,575 from the Rita Kaipat estate’s account.
Arriola served as Pelisamen’s counsel.
Pelisamen is waiting for his sentencing in federal court after being found guilty during his second jury trial.
Arriola was arrested in the northern Philippines in June 2009.
