Taxpayer’s lawsuit filed vs Hocog, Larson

Former Department of Public Lands secretary John DelRosario filed yesterday a taxpayer’s lawsuit against Lt. Gov. Victor B. Hocog and Department of Finance Secretary Larissa C. Larson over the alleged adoption of a Rota Legislative Delegation resolution without public notice that purportedly authorized payment of $400,000 to a private company owned by relatives of Hocog.

DelRosario, through counsel Jennifer Dockter, is suing Hocog and Larson for breach of fiduciary duties, and expenditure of public funds for an improper purpose.

In addition, DelRosario is suing Hocog for violation of the Open Government Act.

The plaintiff asked the Superior Court to issue a judgment declaring Rota Legislative Delegation Resolution 19-3 void ab initio (from the beginning), and all acts taken in furtherance of such resolution null and void.

DelRosario requested the court to issue an injunctive relief preventing Larson from taking any further action in furtherance of the illegal expenditure of public monies.

DelRosario asked the court to slap Hocog with civil penalties for violations of the Open Government Act. He requested the court to hold the defendants liable to pay him attorney’s fees and costs.

Rota Legislative Delegation Resolution 19-03 was approved “to authorize the Department of Finance to pay for fuel, lubrication, and other costs necessary for the maiden voyage of the vessel from Louisiana to its new home port in Rota, and to provide for the personnel and operational costs of the Office of the Mayor of Rota.”

The vessel, M/V Luta, a 150-foot long 500-ton cargo ship that originally came from Louisiana, reportedly can accommodate about 20 passengers and can carry up to 28 20-foot containers. The boat arrived on Rota last March 17 after leaving Panama.

Dockter stated in DelRosario’s complaint that on March 20, 2015, the Rota Legislative Delegation held its first regular session at the Rota Mayor’s conference room.

Four members of the Rota Legislative Delegation were present: Rep. Glenn L. Maratita (R-Rota) and Sens. Steve K. Mesngon (R-Rota), Teresita A. Santos (R-Rota), and Hocog.

Dockter said Rota Legislative Delegation Resolution 19-3 was voted on and adopted by then-Senate president Victor Hocog and the other three members of the Delegation.

Dockter said Hocog introduced Resolution 19-3, which was then adopted without discussion.

Dockter said Resolution 19-3 was not included on the agenda for the session on March 20, 2015.

She said no public notice was given that Resolution 19-3 would be taken up during the Rota Legislative Delegation session.

Resolution 19-3 calls for the Finance secretary to enter into an agreement with Luta Mermaid LLC for “repayment of [the $400,000] within a period of one year.”

Dockter said no contracts or agreements have ever been entered into between Luta Mermaid LLC and the Finance secretary.

Dockter said Luta Mermaid LLC has not entered any contracts of any kind with any government body or agency.

She said Luta Mermaid LLC is under no legal obligation to use the public lands for any public purpose.

“The process by which Luta Mermaid, LLC was chosen to receive $400,000 of public monies is unknown: there were no public proposals requested, no period for public comment, or public hearings held regarding Luta Mermaid, LLC,” the lawyer pointed out.

Dockter alleged that Luta Mermaid, LLC was not vetted for legitimacy or to ensure that it could provide the services it has been supposedly contracted to provide for the Commonwealth.

She said Luta Mermaid, LLC is a limited liability corporation whose shareholders are Abelina T. Mendiola, Deron T. Mendiola, and Fidel S. Mendiola III.

Dockter said all of Luta Mermaid LLC shareholders are relatives of Hocog.

Dockter noted that appropriations of public funds may be introduced only in the House of Representatives.

Dockter said the Government Ethics Act of 1992 provides that “A public official or public employee shall not use or attempt to use the public position to obtain private financial gain, contract, employment, license, or other personal or private advantage, direct on indirect, for the public official or public employee, [or] for a relative,” she said

Dockter said Hocog influenced the decision on Resolution 19-3 and voted it, which gave $400,000 to his relatives’ corporation.

The lawyer said violations of the Government Ethics Act, which resulted in $400,000 of public funds being given to the family members of Hocog, was a breach of Hocog’s fiduciary duties.

Dockter disclosed that a memorandum from the Rota Delegation was sent to secretary Larson on March 25, 2015, which stated that Resolution 19-3 was adopted by the Rota Legislative Delegation on March 20, 2015.

Dockter said just two days later, Larson cause $400,000 to be transferred from the CNMI General Fund Account to Luta Mermaid LLC’s bank account.

Dockter said Larson violated her fiduciary duties when she caused $400,000 to be given to a private company without any lawful or legal appropriations bill.