Hocog insists no allegations that he participated in fraud

Lt. Gov. Victor Hocog asked the federal court yesterday to dismiss a lawsuit filed by a Japanese investor who alleged that Hocog and his relatives refused to pay back the $3.4 million that he put up for the cargo ship M/V Luta.

Hocog, through Guam-based counsel Jeffrey A. Moots, asserted that there is nothing to indicate that he participated in any of the allegations.

In order to state a claim for fraud, Takahisa Yamamoto must assert who, what, when, where and how in particularity, said Moots, who used to be the CNMI chief prosecutor and was also an assistant public defender.

Moots said allegations of fraud must include the “time, place, and specific content of the false representation as well as the identities of the parties to the misrepresentations.”

Motts said a plaintiff alleging fraud “must set forth more than the neutral facts necessary to identify the transaction.”

The plaintiff, Moots said, must set forth what is false or misleading about the statement and why it is false.

The lawyer said a review of Yamamoto’s fraud claim in paragraphs 44 to 50 establish no such allegations specifically directed to fraud.

Moots said the complaint is bereft of any allegations that Hocog participated in any of the matters relating to fraud.

Moots pointed out that the complaint has to be dismissed.

“The complaint does not meet the requirements of who, what, when, where and how; the complaint does not set forth what is false or misleading about the statements and why it is false; and it does not link any of the activity to any specific person,” he said.

The lawyer said the complaint does not set forth factual allegations beyond a right to relief above a speculative level as against Hocog.

He said the complaint must set forth “enough facts to state a claim to a relief that is plausible on its face.”

Moots asserted that this would include alleging specifically what it is that Hocog has done to bring him before the court.

Moots said because the allegations which are specific to the factual basis of the claim never mentioned Hocog, the claims are deficient.

Yamamoto is suing Hocog, M/V Luta, Luta Mermaid LLC, Abelina T. Mendiola, Deron T. Mendiola, Fidel S. Mendiola III, Fidel Mendiola Jr., and Robert Toelkes.

Luta Mermaid owns M/V Luta. Abelina Mendiola, Fidel S. Mendiola III, and Deron Mendiola are members of the company.

Abelina Mendiola is based on Rota, while Fidel Mendiola is a resident of Louisiana, and Deron Mendiola is a resident of Idaho, according to court papers.

Yamamoto is suing them for breach of contract, fraud, and unjust enrichment.

With the filing of the lawsuit, the U.S. Marshal Service seized M/V Luta last Oct. 25 and appointed the National Maritime Services Inc. as custodian of the vessel.

Yamamoto asked the court that the vessel be condemned and be sold to pay his demands, including interest and cost.

After Yamamoto filed the case in federal court, two companies and crew members of M/V Luta also joined in the lawsuit.

Norton Lilly International Inc., an Alabama corporation, filed a complaint in order to collect $131,801.10 in alleged unpaid goods and services.

The captain and six other crew members of M/V Luta have also intervened in Yamamoto’s lawsuit because they allegedly have not been paid their wages, $183,647.77.

Long Consulting LLC, a limited liability company, has also claimed to have a maritime lien in M/V Luta after the vessel’s owners/operators allegedly failed to repay any part of their $300,000 loan or any interest.

It was former Department of Public Lands secretary John DelRosario who first filed a lawsuit against Hocog over M/V Luta.

Last May, DelRosario filed the taxpayer’s lawsuit against Hocog and Finance Secretary Larrisa Larson over the alleged adoption of a resolution that purportedly authorized payment of $400,000 to Luta Mermaid, a private company owned by Hocog’s relatives.