Seizure of alleged dirty money OK’d

The U.S. District Court the NMI has granted the United States’ request to seize monies held by the court that is believed to be tied to an alleged money laundering scheme that was reportedly uncovered by the Federal Bureau of Investigation and the U.S Internal Revenue Service-Criminal Investigation unit.

Magistrate Judge Heather Kennedy has issued a warrant of arrest in rem against funds that were seized in 2019 from two Bank of Saipan accounts that are believed to have been involved in a recent wire fraud and money laundering scheme uncovered by the FBI and IRS. The amount seized from both accounts totals $310,276.26.

According to the warrant of arrest, Kennedy ordered the U.S. Marshals Service and or any other duly authorized law enforcement officer to arrest and take into possession the monies by serving a copy of the warrant to the custodian of the funds.

The judge issued the warrant of arrest in rem following a verified complaint for forfeiture in rem filed by the U.S. Attorney’s Office for the Districts of Guam and the NMI.

The U.S. government, through the U.S. Attorney’s Office, filed last Dec. 30, 2022, a complaint for forfeiture with the U.S. District Court for the NMI for the over $310,000 the court previously seized from Bank of Saipan accounts held in the name of “MCS.”

“MCS” is a consultancy company whose head, A.Y, is believed to have been actively involved in the recently discovered money laundering and wire fraud schemes uncovered by the FBI and IRS-CI within the CNMI involving local political figures and what the complaint states as the company that was awarded the CNMI’s exclusive gaming license, presumably referring to Imperial Pacific International CNMI LLC.

The complaint did not directly name IPI, but it is the only exclusive casino license holder on Saipan.

According to the complaint filed by attorneys Shawn Anderson Jessica F. Wessling, Eric O’Malley, and Mikel Schwab, the United States filed the civil action to forfeit over $310,000 “defendant funds” seized by the District Court from the “MCS” bank accounts because, following an investigation by the FBI and the IRS-CI, it is believed that the proceeds may have come from/or were used in wire fraud and money laundering schemes involving foreign entities and individuals in the CNMI.

The complaint stated that beginning in 2013, the owners and operators of the “company,” presumably IPI and its mother company, IPI Holdings, established relationships with CNMI political figures by sponsoring foreign trips via private jet.

Following the trips, the participating political figures joined other members of the CNMI Legislature to pass a bill that enabled an exclusive gaming license on Saipan. The bill was signed into law in March 2014. However, procedural violations that deprived the public of required notice and other defects resulted in two subsequent bills to correct the errors. The final bill was signed into law in July 2014.

“One of the political figures on the foreign trips played an integral role in passage of the casino enabling legislation,” the suit said.

Approximately one month later, a body of appointed CNMI government officials awarded the exclusive license to the company after the only other bidder was disqualified.

However, months prior to receiving the exclusive license, the company was already paying “MCS” and A.Y., who served as a consultant to the company at a rate of $5,000 per month.

Between 2014 and 2019, the company transferred more than $2 million to MCS and A.Y via checks or wire transfers.