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Candido Castro files for bankruptcy
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Posted on Mar 26 2009
Land surveyor Candido Igibarz Castro filed yesterday a bankruptcy petition in the U.S. District Court for the NMI.
Under a Chapter 7 bankruptcy petition, Castro estimated $0 to $50,000 assets, but claimed $1 million to $10 million in liabilities.
Castro listed at least nine creditors: Bank of Hawaii, Commonwealth Development Authority, Division of Revenue and Tax, attorney F. Matthew Smith, Isla Financial Services, Mid-Pac Micronesia, Pacific Lawyers, attorney Robert O’Connor, and SaipanCell Communications.
Under Bankruptcy Chapter 7, most assets of the debtor are liquidated as quickly as possible to pay off his creditors to the extent possible and to free the debtor to start anew.
In April 2002, Castro was sentenced to eight months in prison and ordered to pay $130,100 in monetary penalties for mail fraud.
Part of the penalties were $33,333 and $66,666 in restitution to CDA and the U.S. Department of the Interior.
In December 2004, Mid-Pac Micronesia sued Castro over alleged non-payment of debt amounting to over $11,000.
In October 2008, the U.S. government filed a civil lawsuit against Castro for the transfer of his lands on Tinian to his son to allegedly defraud the U.S. in its effort to collect $179,418 in connection with the mail fraud case.
