IF the federal court requires more specificity, Assistant U.S. Attorney Eric O’Malley said the prosecution is prepared to provide the names of the unnamed public officials and public figures in the U.S. government’s verified complaint for forfeiture regarding funds seized from two Bank of Saipan accounts in 2019.
Marianas Consultancy Services and Alfred Yue, represented by attorney Mark Hanson, have claimed ownership of the seized funds totaling $310,276.26.
At a hearing Thursday, Chief Judge Ramona V. Manglona of the District Court for the NMI asked the prosecutor whether the claimants would be provided any bill of particulars: “[W]ho the four individuals are, for the claimants to know exactly who to request depositions to — the four individuals in the alleged scheme.”
“The [U.S.] government submits that the claimants know who those individuals are,” O’Malley said, “because he was involved in the scheme, he knows very well who they are, as far as there will be more specificity in the complaint. There could be, and if the court is inclined to say there’s a need for more specificity and then we are prepared to add the names and tell exactly who it is.”
Judge Manglona noted that the prosecution used the initials “MCS” and “AY” in its complaint.
“The [U.S.] government’s approach to this is to tread cautiously for certain sensitivities,” O’Malley said. “If the court thinks that there needs to be more specificity, we are prepared to offer that, but for the purpose of the initial complaint, we submit that the claimant’s claim of ignorance or inability to decide who these actors are, who his friends are, is really just ingenuous because he was involved in it, he knows every well. Again, if the court needs more specificity, the U.S. government is prepared to do that.”
O’Malley added, “We would probably do that under seal, as a precaution, but that is the [U.S.] government’s position.”
For his part, Hanson said: “The [U.S.] government says the proceeds of money laundering were used to commit honest services fraud — that can’t be. Because there were no allegations [in the complaint] that the money that was wired in was proceeds of a previous ‘specified unlawful activity’ or it was tainted. So, the funds they argued are being used to commit honest services fraud are not tainted funds.”
According to Hanson, “There has to be a clear and unambiguous agreement at the beginning of what is being paid for. What type, it does not have to state exactly…. I’m gonna give you money now, and you gonna do this for me…there has to be a clear agreement…on what the corrupt exchange was. The allegations here can be anything…any agreement made to anybody.”
“At some point,” Hanson added, “they have to name the unnamed public figures…. The [U.S. Attorney’s Office] did not mention unindicted co-conspirators…. This is not a criminal case. They got to say who are the individuals involved. The complaint has to be clear who they are talking about. Two of them [in the allegations] are not public officials at all. Two of them are being alleged as public figures but they never alleged all the other elements of quid pro quo, as required.”
Hanson requested the court to dismiss the U.S. government’s complaint.
After hearing the arguments from the parties, Judge Manglona said, “My inclination is to grant the motion to dismiss and give [the U.S government] leave to amend.”
She said she would take the matter under submission and issue an order.
Background
In January 2023, District Court for the NMI Magistrate Judge Heather Kennedy issued a warrant of arrest in rem following a complaint filed by the U.S. Attorney’s Office for Guam and the NMI which sought to forfeit funds seized from two Bank of Saipan accounts in 2019 for wire fraud and money laundering totaling $ 310,276.26.
The complaint was a civil forfeiture action and did not provide names of any defendants but refers to two bank accounts of “MCS” in Bank of Saipan.
The seized funds are in the custody of the U.S. Department of the Treasury.
The complaint arises out of an investigation of the Federal Bureau of Investigation and the U.S. Internal Revenue Service of a suspected conspiracy by foreign entities and entities and individuals in the CNMI to commit wire fraud and money laundering, and involved casino investor Imperial Pacific International.
On Nov. 7, 2019, the FBI executed search warrants at the Office of the Governor, IPI and the office of Alfred Yue of Marianas Consultancy Services LLC, among other offices. Marianas Consultancy Services LLC was a consultant for IPI.
