Suspected bank fraud scheme foiled 2 defendants plead not guilty to indictment charges

A businessman and a former bank CEO were indicted Friday before the US District Court on allegations that both defendants, with two other co-conspirators, schemed to defraud approximately $6.6 million from the Bank of Saipan from December 2001 to February 2002.

The federal grand jury indictment leveled against Bert Douglas Montgomery, 63, former BoS Board Chair Tomas B. Aldan, 56, Dusean Berkich and Michael T. Wilson, alleged that the four plotted to fraudulently obtain control of the local banking institution by making false representations, among others.

One such misrepresentation, according to the indictment charges, portrayed Montgomery as a wealthy and experienced businessman who had the financial means to buy the majority of the bank’s stock.

The defendants, according to the 15-page indictment, concealed their plan to use the bank’s assets to pay for a portion of the acquisition costs, in addition to an alleged intention to exploit their control of the bank by enriching themselves and others through fraudulent loans and other transactions.

Montgomery, through counsel Bruce Berline, and Aldan, aided by lawyer Joseph Arriola, appeared before Chief Judge Alex R. Munson Friday and pleaded not guilty to the charges.

Wilson was arrested in Texas late last week and is expected to arrive on Saipan to face trial on the charges. Berkich, who is reportedly traveling abroad, is still at large as of press time.

Munson has set the jury trial on the case on July 1, 2002.

Assistant US Attorney Patrick J. Smith told reporters during a press conference last week the alleged scheme unfolded by Montgomery and Berkich in fraudulently obtaining control of the bank by misrepresenting Montgomery’s financial background wherewithal in a source of funds by a majority control of the stocks of the bank.

“Once inside the bank, with the assistance of Tomas Aldan, who was the Chief Executive Officer and Chairman of the Board of the bank, a series of unauthorized loans were made to a variety of associates of both Montgomery and Berkich, one such loan in the amount of $5 million was to a company called Sweven Systems, controlled by defendant Michael Wilson. A series of other loans were made both by Montgomery and Aldan, both in excess of $6.6 million,” said Smith, a top white-collar prosecutor fresh from Manhattan. He has recently joined the U.S. Attorney’s Office Guam and CNMI Districts.

In addition, the alleged fraud scheme was carried out at the expense of a bank customer, who was induced to give Montgomery $500,000.

“$240,000 was eventually refunded, but that in turn, came out of the bank’s own funds. In addition, false entry was made in this bank customer’s savings account, passbook, in the amount of $209,000,” explained Smith.

The 15-page indictment by the grand jury lists five count charges, incriminating all defendants with conspiracy to commit wire fraud, three counts of wire fraud against Montgomery, Berkich and Wilson and an additional charge of wire fraud against Montgomery and Aldan, in connection with the scheme to deprive the honest services the bank out of Aldan’s honest services.

Aldan, while CEO of the bank, allegedly approved loans in excess of $250,000 without the authorization of the Bank of Saipan’s board of directors.

“Essentially under the wire fraud statutes, it’s a crime for an insider at a company or a bank to corrupt the received things and value in return for inducing and carrying out this fraud. Aldan, as chair of the board, had the duty to disclose to the board all these transactions to the bank, and according to the indictment, he sealed this transactions in return for receiving, among other things, large promises of higher salary, an interest in the bank itself, interest in company control by Montgomery and Berkich,” said Smith.

Montgomery, who has been allowed to post a $250,000 bond secured by a $25,000 cash to remain at liberty pending the trial, has been admitted as a material witness to the major white-collar fraud case.

The FBI and the Internal Revenue Service pursued the investigation of the case through a referral from the bank’s board of directors.

Smith said the investigation is still ongoing.