Margo Margo Llecholch, Deborah Rengiil and Sherry Tadao with their counsels attended the arraignment hearing.
The defendants with former bank president Timothy Taunton were charged with several counts of criminal complaint ranging from embezzlement, grand larceny, money laundering and conspiracy.
The four were charged in connection with the financial failure of the bank.
Supreme Court Arthur Ngiraklsong during the hearing asked the counsels if the case can be disposed by the end of the year.
Independent Counsel Nelson Werner also asked for a stay of the earlier civil charges he filed in connection with the PSB failure.
The civil charges contains19 different causes of action, including negligence, breach of duty, gross negligence, breach of fiduciary duties, breach of duty of loyalty, embezzlement, conversion, fraud, intentional misrepresentation, intentional concealment, conspiracy to commit fraud, violation of the Financial Institution Act and breach of promissory note.
The complaint said the banks officers and directors converted to their personal use and possession the sum of at least US$16 million.
He also noted in the court that additional information or complaint will be filed in connection with the case.
According to the 74-page complaint, the defendants stole over $231,819 from the defunct bank.
The defendants were writing checks to fictitious companies with the purpose of converting it to personal use after.
The defendants were charged with money laundering because they purposely concealed or disguised the illegal nature of the crime.
PSB was the first locally owned bank in Palau and had more than 7,000 customers and more than US$20 million in deposits when it was declared insolvent and placed under receivership in Nov. 2006.
