Anonymous tip started probe vs Ataligs

Office of the Public Auditor investigator Travis Hurst testified Friday in federal court how an anonymous tip about a large delegation from Rota going to Guam for a political rally started the investigation that led to the indictment of Rota Mayor Efraim M. Atalig and his girlfriend, Evelyn Atalig.

Hurst is expected to continue his testimony today, Monday, at 8:15am when the trial of the Ataligs resumes.

Hurst also testified about the trips that the Ataligs made, how much they received in per diems, and the purpose of those trips, among other things.

Before Hurst’s testimony, the prosecution called three other witnesses from the Department of Finance.

On Friday, U.S. District Court for the NMI Chief Judge Ramona V. Manglona quashed the Ataligs’ subpoenas for documents related to OPA investigators Edward Cabrera and Juan Santos. However, Manglona said, the CNMI government shall produce the personnel files and tax returns of Hurst. The judge directed the CNMI government to email these to the clerk’s office. She said the documents shall remain under seal, and the CNMI government may not provide them to anyone other than the court.

Manglona said the court shall review the documents in camera (or in private) and determine what, if anything, must be disclosed to defense counsel.

The U.S. government moved to quash defendants’ subpoenas.

During Friday’s opening statements, assistant U.S. attorney Eric S. O’Malley, counsel for the U.S. government, said Efraim Atalig betrayed the trust of the people of the CNMI by going on a lot of CNMI-funded trips that were primarily personal and not official, that Efraim Atalig and his girlfriend, Evelyn Atalig, made these CNMI-funded trips over and over again.

O’Malley discussed each of the eight trips taken by the couple at different times in 2018 to Guam, Palau, the U.S. mainland, South Korea, and Saipan.

He said Efraim Atalig signed his own travel authorizations and for Evelyn Atalig. O’Malley said evidence will show that the Ataligs either did not attend the conferences or events at all or only attended on the first day.

The prosecutor said the trip to Guam in June 2018 “started it all” as it was when OPA began the investigation.

He said Efraim Atalig signed the travel authorizations for himself and other government employees to travel from Rota to Guam, as well as two TAs for plane charters. The purpose of the trip was ostensibly to go to a U.S. Department of Defense office to look for surplus equipment, O’Malley said, but was actually meant to attend a political rally on June 23, 2018.

The total amount of payments from the CNMI government in that Guam trip exceeded $10,000, according to the indictment.

The other trips cited were the travel from Rota to San Diego, California to “attend 9th Annual Chamorro Cultural Festival” in March 2018; travel from Rota to Saipan “to promote tourism and to attend the 23rd Micronesia Islands Forum and the Flame Tree Festival” in April 2018; travel from Rota to Palau “to promote tourism in Palau” in May 2018; and travel from Rota to Saipan “to attend the Agriculture Fair in Saipan” in August 2018.

O’Malley said the real purpose of that Saipan trip in August 2018 was really to participate in a partisan campaign activity.

Showing photos of Ataligs and other people wearing yellow political party shirts in his presentation to the jury, O’Malley said the pictures are the most powerful evidence.

Steven P. Pixely, counsel for Evelyn Atalig, said that Evelyn Atalig’s nightmare began in 2018, or almost two years ago, when Hurst and Federal Bureau of Investigation special agent Haejun Park went to her office on Rota and interrogated her.

Pixley said the prosecution kept describing Evelyn Atalig as Efraim Atalig’s girlfriend, when the relationship is more than that—that she is his common-law wife.

Pixley cited other trips when Evelyn Atalig did not get per diems.

The defense counsel said evidence will show that Evelyn is not guilty of all charges.

David G. Banes, counsel for Efraim Atalig, said that Atalig did everything for Rota, that he was always acting sincerely in trying to promote Rota.

Banes showed a photo of the mayor riding a carabao to lead a Rota delegation during a Liberation Day parade in Guam. Banes noted that Efraim Atalig has a health problem and in fact underwent bypass operation in the Philippines. Yet he can be seen in the photo riding a carabao under the hot sun, Banes added.

Banes said Efraim Atalig also helped make the Rota float in that Guam parade and, in fact paid for that trip. He said Efraim Atalig was supposed to be in the dignitary box on the stage in that parade, but he chose to ride the carabao.

He also pointed out that, despite having been indicted already, Efraim Atalig still won his re-election bid in 2018. “The people of Rota have spoken,” Banes pointed out.

Banes said Finance has to approve the TAs, which they did.

Banes cited other trips that mayor Atalig did not submit trip reports and paid for himself.

The Ataligs are being charged with conspiracy to commit wire fraud and theft from program receiving federal funds, wire fraud, and theft from program receiving federal funds. Both are also charged separately with false statement.