Judge orders return of $223,022.79 to Tinian municipality

The federal court has granted a joint emergency motion filed by the U.S. government and the Municipality of Tinian and Aguiguan for the immediate release to the municipality a check in the amount of $223,022.79 that was part of the municipality’s funds in a bank account that the U.S. Marshal seized pursuant to a court’s order.

Finding good cause, U.S. District Court for the NMI Chief Judge Ramona V. Manglona on Thursday ordered that checks from the funds currently held in the court registry be issued to the Tinian municipal treasurer in the amount of $223,022.79 and $100,000 to the U.S. Attorney’s Office.

Assistant U.S. attorneys Jessica F. Cruz and Mikel W. Schwab, counsel for the U.S. government, and attorney Kimberlyn King-Hinds, counsel for Tinian and Aguiguan Municipality and other co-defendants, said the municipality urgently needs these funds for operational costs and employee salaries.

Last Dec. 24, the U.S. government applied for and obtained a writ of execution to levy the funds in the municipality’s bank account. Six days later, the U.S. Marshal levied $323,022.79 and deposited the funds into the court’s registry.

Following the seizure of the funds, the U.S. government and Tinian and Aguiguan Mayor Joey P. San Nicolas have entered an agreement for installment payment terms that will compromise the outstanding $1.9 million debt and will provide the payment in full within 12 months.

The parties agree that the U.S. government will apply $100,000 of the levied funds toward the outstanding debt. The U.S. government will then file a motion for the remaining $223,022.79 to be returned to the municipality for its operational costs.

San Nicolas and the municipality agree to make minimum monthly payments of $104,114 commencing on March 1, 2016, and continuing on the first of each and every month thereafter until the original principal of $1,349,367 is satisfied.

According to court records, in 2005 the U.S. District Court for the NMI found the Tinian and Aguiguan Municipality liable to pay the federal government for the value of work and materials provided by the U.S. Geological Survey when they were contacted in 1989 by then-Tinian mayor James Mendiola to engage in a water source investigation project.

Over the course of several administrations, the debt owed to the federal government has never been paid.

San Nicolas last Jan. 4 stated that the Tinian leadership now pledges to work collaboratively with the U.S. District Attorney’s Office about resolving the outstanding judgment immediately.