Villagomez, his sister Joaquina, her husband Commerce Secretary James Santos, and former CUC Executive Director Anthony C. Guerrero were indicted by a federal grand jury on charges of conspiracy to defraud the federal government, wire fraud and theft of federal funds.
Guerrero entered into a plea agreement with the federal government on Friday. (Story on page 4)
According to the indictment, Guerrero confessed to federal authorities that he was coerced to grant a $120,000 sole-source contract to Mrs. Santos’ chemical distribution firm Blue Pacific, a month after the Department of Commerce approved its license in 2007.
CUC used federal money to purchase the chemical “Rydlyme” which authorities said wasn’t useful at all to the utilites agency.
Villagomez and the Santos couple each posted a $50,000 unsecured bond and will return to the federal court on Oct. 6 at 9 a.m. for their jury trial.
Villagomez is represented by Guam attorney David Lujan.
Mrs. Santos will be represented by attorney Richard W. Pierce while Mr. Santos’ counsel is Colin Thompson.
Pierce said his client is “absolutely not a flight risk.”
Press Secretary Charles P. Reyes Jr. said the Fitial administration expects Villagomez to carry on his duties as lt. governor despite the ongoing case against him.
“He will continue to function as lt. governor unless he voluntarily steps down,” Reyes told Variety over the phone.
Gov. Benigno R. Fitial and Villagomez’ term ends in Jan. 2010.
Reyes said the governor hasn’t replaced Commerce Secretary Santos yet nor has he resigned, but he is on leave and Deputy Secretary Michael Ada is the department’s acting head.
