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US govt wants to seize pension funds of Villagomez, Santos couple
Villagomez, Santoses still owe US govt $1.09M
In anticipation of the release of funds to restore the 25-percent pension cut of CNMI retirees, the U.S. government has asked the federal court to be allowed to seize funds that will be released to former lieutenant governor Timothy P. Villagomez, former Commerce secretary James A. Santos, and his wife, Joaquina V. Santos.
According to assistant U.S. attorney Jessica F. Cruz, the funds will be used to partially satisfy the judgment against Villagomez and the Santos couple.
Cruz said that, as of July 31, 2014, Villagomez still owes $340,900.97 in restitution—$339,092.29 in principal and $1,808.68 in interest.
Also, as of July 31, 2014, James Santos and Joaquina V. Santos have a total balance due of $372,621.53 and $372,621.53 respectively, Cruz said.
In separate applications for writ of execution filed Tuesday in the U.S. District Court for the NMI, Cruz said the restoration of the 25-percent cut in the pensions of Villagomez and the Santoses and any interest they are entitled to is imminent and that such funds will be available for immediate release to the defendants.
Writ of execution refers to an order from the court to the sheriff that allows the sheriff to collect money owed or take possession of property owned by a judgment debtor.
In his declaration, Cruz said Public Law No. 18-56 (casino law fix) provides that the allocation of $28 million (combined) from the annual license fee to the First and Second Senatorial District Legislative Delegations must first be appropriated to pay for the 25-percent reduction of these districts’ retirees and the beneficiaries’ pension.
The lawyer said Public Law 18-56 also provides that of the $26 million allocated from the annual license fees in the first year to the Third Senatorial District, $25 million must be expended by the Finance secretary to restore the 25-percent reduction of the retirees’ and the beneficiaries’ pensions of the district and to pay interest to active members who terminated their membership in the defined-benefit plan.
Further, Cruz said, the law provides that of the $11 million allocated from the license fees in the following years to the Third Senatorial District, $10 million must be expended by the Finance secretary to restore the 25-percent reduction of the retirees’ and the beneficiaries’ pensions of the district.
Cruz said any funds that have been or will be appropriated pursuant to Public Law 18-56 that will be in the possession and/or control of the NMI Settlement Funds in the immediate future, and to which the defendants have a legal interest, are subject of execution and may be seized to satisfy the judgment against them.
The defendants were convicted for their role in a conspiracy to defraud the Commonwealth Utilities Corp. through needless purchases of a de-scaling chemical called Rydlyme.
The federal court re-sentenced Villagomez to nine years in prison. In August 2009, the court sentenced the Santos couple to six years and six months in prison each.
