Businessman in CW-1 fraud gets probation sentence

A businessman was sentenced yesterday in federal court to one-year probation for engaging in fraud in connection with the application for CNMI-Only Transitional Worker Program or CW-1 permits.

Kosuke Tomokiyo, 55, a Japanese national, was also ordered to pay immediately a $5,000 fine after sentencing.

In the event there is any balance in the fine after the sentencing, it shall be paid in installments during the probation period, said U.S. District Court for the NMI Chief Judge Ramona V. Manglona.

Tomokiyo was also directed to pay a special assessment fee of $100 immediately after sentencing. He was also ordered to report to an immigration official for deportation.

The judge granted assistant U.S. attorney Eric O’Malley’s request that Tomokiyo report to Homeland Security Investigations this morning, Tuesday.

According to the minutes of the hearing, O’Malley, who is counsel for the U.S. government, recommended a sentence of one-year probation and a $5,000 fine.

O’Malley said the sentence is enough to deter Tomokiyo and others who may be tempted to engage in this type of crime.

The prosecutor said the U.S. government has seen no evidence that Tomokiyo was involved in other illegal activities while in the CNMI, but believes he merely wished to reside here as a de facto tourist.

David George Banes, who is private counsel for Tomokiyo, recommended a sentence of one-year probation and a $1,000 fine.

In his recommendation, Banes pointed out that the U.S. Probation agrees that the defendant played a minor role in the fraudulent scheme at the center of this case.

Banes said Tomokiyo has no criminal history, poses no threat to society, and that he is already a deportable alien.

Tomokiyo pleaded guilty to one count of fraud and misuse of visas for a scheme in which he obtained a CW-1 permit by conspiring with co-defendant, Mizanur Khan. Khan also pleaded guilty.

As part of the scheme, Tomokiyo agreed to provide Khan with capital to start a small business called K.C.A. Corp. In exchange, Khan and K.C.A. sponsored Tomokiyo as one of its employees, even though he was not, in fact, an employee.

Tomokiyo and Khan sustained this scheme for three years, twice submitting information to U.S. Citizenship and Immigration Services in order to obtain CW-1 renewals.

According to court documents, Tomokiyo was vice president and part owner of K.C.A. Corp. Khan, who was president and part-owner of the company, was charged with four counts of fraud and misuse of visas and permits and two counts of mail fraud.

According to the indictment, on Aug. 5, 2015, Khan lied to USCIS that three foreign workers would be employed by K.C.A. as an “operation service worker (charcoal maker)” and that they would be employed in that capacity for 40 hours per week, for a period of one year.

On Aug. 22, 2016, Khan and Tomokiyo allegedly lied to USCIS that Tomokiyo had previously been and was to be employed by K.C.A. as a “sales manager,” and that Tomokiyo had been employed in that capacity since January 2016.