US govt sues father, son over transfer of lands

The U.S. government filed Thursday a civil lawsuit in federal court against businessman Candido I. Castro for the transfer of his lands on Tinian to his son to allegedly defraud the United States in its effort to collect the $179,418.01 balance in connection with his mail fraud conviction in 2002.

The U.S. government, through Assistant U.S. Attorneys Mikel W. Schwab and Jessica F. Cruz, also named Castro’s son, Sean Castro, as co-defendant.

The government lawyers asked the U.S. District Court for the NMI to rule that the transfer of Candido Castro’s interest in five lots on Tinian and another land on Saipan were fraudulent and void.

The plaintiff sought judgment preventing Sean Castro from disposing or diminishing the value of the properties or any property that he owns or has an interest in.

The U.S. government also asked that Candido Castro be required to immediately satisfy his criminal monetary obligations.

Candido Castro was convicted on two counts of mail fraud on April 2, 2002. The criminal judgment imposed a $100 special assessment, $100,000 in restitution plus interest, a $30,000 fine, and costs of incarceration and supervision.

Schwab and Cruz said the entry of the criminal judgment created a lien in favor of the U.S. on all of Candido Castro’s property and/or rights to property.

They cited that the judgment requires Candido Castro to notify the court and the U.S. Attorney of any change in his economic circumstances.

The lawyers said Candido Castro failed to disclose his conveyance of four lots on Tinian, one lot on Saipan, and his future transfer of another piece of land on Tinian in his financial statement dated Oct. 17, 2006.

They said Candido Castro also failed to disclose his conveyance of the five lots in his financial affidavit dated May 16, 2008.

The prosecutors said that as of June 30, 2008, Candido Castro has satisfied his special assessment debt and a total of $22,700 has been paid over and applied toward his restitution debt.

This, the prosecutors said, has left a balance of $125,684.65 in restitution, $30,000 fine, $14,614.92 in incarceration costs, and $9,118.44 in supervision costs.

They alleged that, on Sept. 23, 2005, Candido Castro conveyed to Sean Castro six land properties in Marpo, Tinian and another property on Capital Hill, Saipan.

On Dec. 2, 2005, Candido Castro conveyed to Sean Castro another land in Marpo, Tinian.

On Oct. 25, 2006, only eight days after filing his 2006 financial statement, Candido Castro conveyed to Sean Castro another land in Marpo, Tinian.

“At the time that defendant Candido Castro made the conveyance, he did not receive reasonably equivalent value in exchange for the conveyance of his interest and rights in the properties,” the prosecutors said.

They alleged that Candido Castro did not comply with the law and the criminal judgment by failing to notify the court and the U.S. of the conveyance.

“Candido Castro conveyed the property to hinder, delay, or defraud the United States in its efforts to collect on [his] criminal judgment,” the prosecutors said.

The conveyance, the lawyers said, impaired the rights of the U.S. and the victims in that Candido Castro is now insolvent and has no money or property out of which the debt can be satisfied.