Victoria Hotel owners file racketeering suit vs bank

The owners of Victoria Hotel filed yesterday a lawsuit in federal court against a bank in Guam that allegedly operated in the CNMI without a full service banking license.

Jesus T. Lizama, his wife Victoria L.G. Lizama, and J&JEV Enterprises Inc. are suing ANZ Guam Inc., formerly known as Citizens Security Bank (Guam) Inc., and five unnamed co-defendants for violation of Commonwealth Consumer Protection Act and Commonwealth Debt Collection Act-wrongful disclosure.

The plaintiffs, through counsel Juan T. Lizama, are also suing the defendants for negligent misrepresentation, intentional misrepresentation, breach of contract, constructive fraud, Federal Racketeer Influenced and Corrupt Organization Act, tortuous interference with contractual relations, interference with prospective contractual relations, and intentional infliction of emotional distress.

The plaintiffs asked the U.S. District Court for the NMI to hold the defendants liable to pay them in unspecified amount of damages, attorney’s fees, and court costs. They demanded a trial by jury.

Saipan Tribune tried but failed to get comment from ANZ Guam.

According to Lizama in the complaint, on Jan. 10, 1997, plaintiffs executed a $1.8 million loan agreement with Citizens Security Bank (later acquired by ANZ Guam), together with the mortgage associated with the loan guarantee agreement with U.S. Department of Agriculture.

Plaintiffs made payments, even to such extent as making overpayments on the overdue amount to avoid defaulting entirely on the loan.

Lizama said plaintiffs continued to make payment based on Jesus Lizama’s ability to pay until he was unable to meet ANZ’s demands.

Lizama said ANZ’s demands were “unreasonable, excessively coercive, and fraudulent.”

Lizama said after plaintiffs were defaulted on the loan, USDA, as guarantor, paid ANZ its 70 percent guaranteed obligation.

The lawyer said notwithstanding the payment by USDA, ANZ continued to force plaintiffs to pay the entire debt as if USDA’s payment never happened.

Lizama said at the time of the initial mortgage and promissory note, plaintiffs did not know that ANZ was not a full service bank duly licensed to operate in the CNMI.

He alleged that ANZ operated in the CNMI without a license for years but maintaining that it has the legal capacity to own CNMI real properties in fee simple title.

Lizama said at the time of the foreclosure, ANZ was already paid by USDA the guaranteed 70 percent of the plaintiffs’ debt.

At the time of the foreclosure, Lizama said, ANZ did not disclose to the court and to the plaintiffs that it had been paid by USDA the guaranteed amount.