U.S. Department of Labor Attorney Charles Song has filed a notice of default against casino investor Imperial Pacific International LLC in federal court for IPI’s failure to pay an amended consent judgment.
“IPI…failed to deliver full payments of $249,287.00 on August 1, 2023, and $249,287 on September 1, 2023,” Song said.
“Under the terms of this court’s judgment, IPI’s failure to make timely payments constitutes an event of default. Pursuant to these terms, the [USDOL] Secretary hereby declares a default of the Amended Consent Judgment by filing this Notice of Default and serving it on IPI. As a result of IPI’s default, the full gross amount outstanding and due under this Consent Judgment as amended, plus post-judgment interest at the rate applicable to federal judgments are immediately due to the U.S. Department of Labor,” Song said.
“If IPI fails to cure the default within five business days from the filing of this notice of default, the [USDOL] Secretary shall notify the Court of the failure to cure such default(s) by filing a Notice of Failure to Cure Default with the Court and providing a copy of said notice to the defendants,” Song added.
“Within 10 business days of the date of the filing of the Notice of Failure to Cure Default, the Receiver is authorized to exercise all powers authorized under the Order Appointing Receiver and Setting Terms of Receivership, to sell defendants’ assets, including but not limited to the Lot 330 Parcels, to pay the full gross amount outstanding of $1,537,719.70 plus post-judgment interest, and the receiver’s costs and fees,” Song said.
In 2021, the District Court for the NMI appointed Civille & Tang PLLC and its team of professionals, acting by and through its principal representative Joyce C.H. Tang, as the federal equity receiver for the case.
Background
Chief Judge Ramona V. Manglona granted the stipulation of USDOL and IPI for a second amendment to the consent judgment that the court approved on April 11, 2019.
Judge Manglona ordered IPI to pay USDOL $2,195,726.01, which was comprised of $1,010,416.04 in back wages and an additional equal amount as liquidated damages of $1,010,416.04, and an additional amount of $174,893.93 as civil monetary penalties.
As part of the stipulated agreement, IPI offered its leased property across from Hopwood Middle School, which IPI owned through an affiliate, Green Estate Holdings, as security for the monetary liability of $2,211,563.
Green Estate Holdings consented to the jurisdiction of the court for the purpose of enforcing the USDOL secretary’s security interest.
For its part, IPI acknowledged that any future missed payroll would be subject to the assessment of liquidated damages and civil money penalties.
IPI and USDOL entered into a consent judgment that required the casino investor to make payments for unpaid minimum wage and overtime premiums pursuant to the Fair Labor Standards Act.
After IPI failed to make payments as required by the consent judgment, the District Court for the NMI on Jan. 21, 2021, found IPI to be in contempt and ordered IPI to purge contempt by paying the unpaid payroll of its employees.
To purge contempt, IPI entered the first amended consent judgment and a subsequent amendment to a payment plan setting forth a series of payments and other conditions for IPI to follow.
IPI made the payments required under the first amended consent judgment, but USDOL found that IPI violated the Immigration and Nationality Act as well as the Fair Labor Standards Act for failing to pay the promised wage rate and overtime premium to IPI employees hired under the H-2B program.
IPI was again found in contempt of the court’s injunction against violations of the FLSA.
To address the violations and purge its contempt, IPI agreed to enter into a second amended consent judgment.
The monetary liability of IPI comprised of back wages for its more than 300 employees, liquidated damages, civil penalties, and interest on the payment plan amounting to $2, 211,563.
IPI agreed to make payment from January 2022 to January 2024, and offered as security its Green Estate property.
According to the stipulation for the second amended consent judgment, IPI acknowledges and understands “that any future missed payroll be subject to the assessment of liquidated damages and civil money penalties.”
