Pelisamen ordered to bring estate documents, prepare to read aloud

Superior Court Associate Judge Juan T. Lizama has ordered ousted Rita Kaipat estate administrator Luis K. Pelisamen to bring to the court any financial records in his possession pertaining to the estate.

Lizama directed Pelisamen to also bring his eyeglasses and be prepared to read aloud such documents during the hearing set for June 20, 2006 at 9am.

The hearing will be about the missing funds from the bank account under the name of Rita Kaipat estate.

Lizama reminded Pelisamen that he was already directed earlier to obtain a lawyer to represent him in this matter.

“Please be advised that failure to appear with these documents, without adequate excuse, shall be ground for the issuance of an arrest warrant by the Court, and may additionally be deemed a contempt of the Court,” said the judge in his notice and order for Pelisamen.

Lizama removed Pelisamen as administrator of the estate, but stated that he will be held liable “for any misdeeds in the course of his service as administrator.”

He also found him in contempt of court for failure to file a proper accounting of funds improperly given to surveyors, failure to retrieve these funds, and failure to transfer funds to the heirs.

Meanwhile, the court urged the heirs of the Rita Kaipat estate to appoint a new administrator.

Lizama also released Steven Newman from his responsibilities as the temporary administrator and investigating counsel following the execution of subpoenas to various banks for financial information pertaining to the estate.

Lizama requested the parties in the probate to recommend an accountant qualified to conduct a forensic audit of transactions relevant to the case.

“The Court will authorize a forensic audit of all bank statements, records and all other financial information relevant to this case, including the accounting and inventory filed by the former administrator’s counsel,” he said.

The judge said that in the event any money is recovered from the funds formerly allocated to the surveyors, the money will be divided equally among the estates of Rita, Isaac, and Benigno Kaipat.

In the same order, Lizama found Pelisamen’s former counsel counsel, Joseph A. Arriola, in contempt of court.

The Rita Kaipat estate was awarded by the defunct Marianas Public Lands Authority $4.7 million in land compensation settlement. The amount was split equally among three estates, Rita, Isaac, and Benigno Kaipat.

On Nov. 25, 2005, Arriola and Pelisamen opened a checking account in the amount of $1,377,058.39 at the Bank of Hawaii under the account name: Estate of Rita Kaipat. The court discovered that the money in the account had dwindled to less than $20,000.