Bert D. Montgomery said if the court refuses to grant him a re-sentencing hearing, he is requesting for a new trial or a reversal of the case.
In his 30-page motion, Montgomery said a new trial may be warranted in his case since it can now be placed on record that he was not the leader/organizer of the offense charged.
He said local attorney Bruce Berline may have obstructed justice and condemned an innocent man to prison by withholding evidence that was the key issue to his release.
Montgomery, a businessman, an entertainer on television shows for children and a board member of the Junior Diabetes Association in Houston, Texas, was arrested on Saipan in April 2003.
As a potential witness, he was released but was indicted in the same year for three counts of wire fraud, conspiracy to commit wire fraud, for deprivation of honest witness, and four counts of money laundering and conspiracy to commit money laundering.
Montgomery posted a $250,000 bond and hired Berline as his counsel.
He said from the very beginning, Berline seemed to be having problems with the case, a potential conflict of interest.
The documents stated that Montgomery was involved in a complex fraud scheme which led to the temporary closing of the Bank of Saipan and the loss of millions of dollars.
Montgomery and his business partner DuSean Berkich sought to purchase a controlling interest in the bank.
The two convinced Tomas Aldan, then the bank’s CEO, to serve as their “inside man” by promising him lucrative benefits and kickbacks.
The prosecution said the three then attempted, by various fraudulent means, to acquire Bank of Saipan stock.
Montgomery’s fraud resulted in the bank losing over $5 million.
As a result, the bank was temporarily closed and was placed in receivership.
Montgomery was sentenced to 60 months jail term on June 20, 2003 for three counts of charges and 240 months on the other five charges against him.
Montgomery’s three appeals were denied.
Montgomery said the Bank of Saipan was formed under commonwealth law and was not insured by the Federal Deposit Insurance Corp.
In 2001, the Calvo family and the JLH Trust were the major stockholders of the bank.
Montgomery entered into a transaction and buyout with the Calvos and JLH Trust shares.
He said after money was transacted for these shares, Montgomery’s plan was to make the Bank of Saipan a settlement bank for credit card transactions.
After Montgomery’s arrest, the CNMI government closed the bank, froze its assets and move for appointment of a receiver.
Montgomery said even though there was nearly $16 million deposited with the bank, it had already a history of engaging in non-prudent lending practices.
Montgomery said David Berger, a former bank board member, testified that he had applied for FDIC membership for the Bank of Saipan, but the FDIC disclosed very bad findings about the bank.
The FDIC found several violations, including an unprofitable bank structure and overstated earnings.
The bank, the FDIC stated, kept a poorly maintained loan documentation, lost over $3 million during the six-month period in 1997, paid exorbitant salaries and personnel expenses, had non-existent collection efforts, lacked satisfactory compliance with banking laws and regulations.
Moreover, the FDIC stated, Aldan lacked any real banking experience.
Montgomery said the worst case scenario was the audit conducted by Deloitte Touche Tohmatsu from 1997 to 2000 which proved that the bank and its board of directors did nothing to change its deficiencies.
He said “the running of the bank was shoddy and this is why the bank was ready to be pawned off to someone that knew nothing of the liability he or she was buying.”
He said he was depicted as a con artist, a crook and a liar and the board of directors set him to take the bank’s fall which he did not make.
Montgomery said Berline was paid $50,000 to defend him but he got ineffective legal assistance because there was a conflict of interest right from the start
He said Berline failed to interview all the government witnesses, and failed to raise and argue points and issues at the sentencing.
Montgomery argues that there was also judicial misconduct on the part of U.S. District Court for the NMI Chief Judge Alex R. Munson.
He said “Munson had shown disdain toward him throughout the criminal proceedings by denying every motion he filed, including a motion for a change of venue.”
He said Munson’s wife lost money from the fraud perpetrated against the Bank of Saipan.
Montgomery said he has finished serving his sentence for the convictions of wire fraud and is not raising those convictions in particular.
His concern is the 20 years he was sentenced to serve for money laundering.
He said the U.S. Court of Appeals for the Ninth Circuit has remanded his case to Munson who refused to re-sentence him or even hear his oral argument from his attorney.
