Laos’ petition for subpoena is placed under advisement

U.S. District Court for the NMI Magistrate Judge Heather L. Kennedy on Monday placed under advisement the petition of Lao People’s Democratic Republic to subpoena Bridge Capital LLC and its co-owner John K. Baldwin and others in connection with the criminal tax investigations in Laos and two international arbitration proceedings in Singapore.

Kennedy said a written decision would be forthcoming, no later than the middle of January 2016.

Attorney Eric Cottrell, counsel for Laos, informed the court that they would be requesting for subpoenas for Bridge Capital LLC, Baldwin, and First Hawaiian Bank.

A subpoena for David Jensen, who no longer stays on Saipan, would be withdrawn, Cottrell said. Jensen used to serve as Bridge Capital’s chief financial officer.

Cottrell’s co-counsels, William Fitzgerald and John Branson, also appeared in court.

Deborah Deitsch-Perez, lawyer for Bridge Capital LLC and Baldwin, did a PowerPoint presentation in arguing their opposition to the petition.

Deitsch-Perez’s co-counsel, Michael Dotts, also appeared. Seated at respondent’s table was Tucker Baldwin, assistant to the chief executive officer of Bridge Capital LLC.

In Laos’ application, Fitzgerald alleged that John Baldwin is under criminal and tax investigations in Laos for allegedly bribing Lao officials over $300,000 that caused the termination of an audit and cost the Lao government $70 million in lost tax revenue over a five-year period.

Fitzgerald asserted, among other things, that both the Lao proceedings and the arbitration proceedings directly involve entities owned or controlled by John Baldwin and Shawn Scott, who own Bridge Capital LLC.

In opposing Laos’ application, Dotts and Deitsch-Perez argued, among other things, that Laos failed to carry its burden to show that the federal court should issue the subpoenas.

Dotts and Deitsch-Perez said the subpoenas cannot have a legitimate basis because Bridge Capital is not the parent of, and does not hold an interest in, either Sanum Investments or Lao Holdings, nor does Bridge Capital have consolidated financials with Sanum or Lao Holdings.

The lawyers said Bridge Capital doesn’t do business in Laos; rather, Bridge Capital owners are Sanum executives who have interests in Lao Holdings.

Sanum Investments and Lao Holdings are parties in the arbitrations. Sanum is reportedly the target of the Lao proceedings.

Lao Holdings owns the Savan Vegas and Casino in Laos. The casino opened in 2009 and that Savan Vegas is now 80 percent owned by the Baldwin group and 20 percent by Laos, according to Fitzgerald.

Fitzgerald said Bridge Capital is the parent company of Sanum Investments and Lao Holdings.

But Dotts and Deitsch-Perez said because John Baldwin refused to funnel the investment’s profits under the table to government officials in Laos, Laos eventually forcibly stole, among other things, the Savan Vegas casino hotel and resort, a business owned 80 percent by Sanum, a subsidiary of Lao Holdings.