Imperial Pacific International legal counsel Michael Chen speaks via Zoom as Commonwealth Casino Commission Executive Director Andrew Yeom listens during a revocation hearing conducted by CCC in the governor’s conference room on Capital Hill, Thursday.
Imperial Pacific International Director Howyo Chi, right standing, hands copies of the proposed settlement terms to members of the Commonwealth Casino Commission.
ON the second day of the casino license revocation hearing, Imperial Pacific International, through its legal counsel, submitted a copy of its proposed settlement terms to the Commonwealth Casino Commission. No details were disclosed.
The revocation hearing, which started on Wednesday in the commission’s conference room in Gualo Rai, resumed at 1 p.m. Thursday in the conference room of the Office of the Governor on Capital Hill.
IPI legal counsel Michael Chen, who appeared via Zoom from California, asked the commission if he could submit the settlement proposal as an exhibit under seal due to its “confidential nature.”
He said the untimely disclosure of the settlement terms may be detrimental to the interest of IPI and the general public. He then made a motion to submit the document under seal.
Noting the presence of reporters in the conference room, Chen also made a motion to keep the discussion on the settlement terms private “at least for a period of time” because the document contains information regarding IPI’s finances and other internal matters.
“It’s probably for the benefit of the public to keep this part of the record only to the commission members and sealed from the public. We are talking about the potential harm to IPI or the CNMI if the revocation hearing goes forward without sealing these settlement records,” Chen told the commission.
Assistant Attorney General Keisha Blaise, the legal counsel of CCC Executive Director Andrew Yeom, did not object.
After IPI’s proposed settlement was labeled, numbered and submitted as an exhibit, Blaise cross-examined IPI Director Howyo Chi.
She asked him, among other things, about the complaint against IPI for failing to comply with the commission’s Order 2020-003 to maintain payroll reserves for IPI’s employees in 2020.
The order issued in March 2020 required IPI to maintain $4.2 million in a bank account restricted to payroll. Chi said IPI had argued that they did not have to do so.
The commission’s acting chairman, Ralph S. Demapan, who presided over the hearing, called for a recess during Blaise’s examination of the commission’s executive director, Yeom.
The hearing will resume today, Friday, at 9 a.m. in the governor’s conference room.
Besides Demapan, the hearing officers include Casino Commissioners Ramon Dela Cruz, Martin Mendiola and Mario Taitano.
The hearing pertains to CCC’s enforcement actions against IPI for its non-payment of the annual exclusive casino license and regulatory fees. Since the onset of the Covid-19 pandemic in 2020, CCC said IPI has failed to pay its obligations that have now amounted to over $62 million in annual exclusive casino license fees due to the CNMI government, and over $17.62 million in regulatory fees due to the commission, plus fines and penalties, for a total of $79.63 million.
Legal counsel’s departure
Also on Thursday, Blaise informed the commission that it was her last day as the executive director’s counsel, adding that she was leaving the island.
Attorney General Edward Manibusan confirmed that Blaise was leaving the island. Asked if she had submitted a letter of resignation, the AG said, no. Asked if Blaise had indicated she would submit one, the AG said, “I don’t know.”
