Businessman guilty of wire fraud

A federal jury rendered a guilty verdict to one count of wire fraud and not guilty to two other counts of wire fraud to a businessman accused of defrauding two real estate companies based in Switzerland in the amount of $375,000 by engaging in a scheme purportedly to buy house on Saipan for the companies.

The 12 jurors found Khajadour J. Semikian guilty of wire fraud as to the incident on Jan. 3, 2002.

But the jurors found the 53-year-old Semikian not guilty to two counts as to the incidents on March 11 and May 7, 2002.

U.S. District Court for the NMI Chief Judge Alex R. Munson set the sentencing for March 6, 2007.

Asked by Saipan Tribune for comment about the verdict, Semikian responded: “No…I’m depressed now.”

Defense lawyers Stephanie Flores and Vicken Hagopian stated they are not sure yet whether they will appeal.

“We just go and meet with some probation officers and the U.S. Marshal. We still have a lot of work to do,” Flores said.

Assistant U.S. attorney Timothy Moran said they are so happy with the guilty verdict.

“We thought the evidence supported guilty on all counts but we are very happy that we’ve got guilty on one count,” Moran said.

“As far as the sentencing, we argue that we charged the scheme and not the particular transaction. So if you are found guilty of that scheme so the whole loss of amount should be what’s relevance in sentencing… that’s about $350,000,” he added.

Moran said the maximum sentence term for wire fraud is five years in prison.

Munson ordered that pending the sentencing, the defendant is released on the same terms and conditions as previously set by the court but with some additional conditions.

The judge said Semikian should post a secured bond of $500,000.

Munson said the $300,000 that is currently posted in the Central District of California may be transferred to the U.S. District Court for the NMI to help make up the sum of $500,000.

Munson said upon his return to Los Angeles, Semikian should immediately surrender his passport to his attorney.

Attorney Hagopian will then surrender the passport to the Pretrial Services officer in the Central District of California.

The passport should then be surrendered to the Central District of California, the judge said.

Munson said Semikian should not leave the state of California while under Pretrial Services supervision.

He directed Semikian to pay the expenses for transportation of two U.S. Marshals who will accompany him from Los Angeles to Saipan for sentencing.

Moran moved that Semikian be detained pending sentencing due to the fact that he is a flight risk.

Hagopian objected to the motion.

Semikian was indicted with three counts of wire fraud. The Federal Bureau of Investigation arrested him last May in California.

Semikian allegedly obtained $250,000 from Cupspring Investment Co. and $125,000 from Brisadal Real Estate Co.

According to the indictment, Semikian was president of Retsa Development Inc., a real estate development company located in Saipan.

The defendant was also president of three companies on Saipan called Namlas Development Corp., Amal Development Inc., and Anwar Development Inc. Each was formed for the purpose of buying, holding, and investing in real estate in the CNMI.

Cupspring Investment was the shareholder in Namlas Development, while Brisadal Real Estate was the sole shareholder of Amal Development.

The prosecution stated that from January 2002 until July 2005, Semikian carried out the scheme to defraud and to obtain money from Cupspring Investment and Brisadal Real Estate “by means of false and fraudulent pretenses, representations, and promises.”

The prosecution alleged that Semikian represented to Cupspring Investment that a particular house in Saipan was available to buy, that he knew the owner, and that he could purchase it for $250,000.

Namlas Development was established with the defendant, as president purportedly for the purpose of buying the house.

In January 2002, Semikian obtained $150,000 from Cupspring Investment purportedly to be used by Namlas Development toward the purchase price of the house.

In March 2002, the defendant allegedly obtained $100,000 from Cupspring Investment in a form of loan purportedly to be used by Namlas Development to complete renovations on the property.

The defendant then represented to Cupspring Investment that Namlas Development had purchased the property.

The prosecution said the truth is after Namlas Development had received the money from Cupspring Investment, Semikian wrote numerous checks from a Namlas checking account at City Trust Bank in Saipan payable to cash, to himself, and to other persons.

Semikian also represented to Brisadal Real Estate that he was aware of another property for sale and that it too could be purchased at an agreeable price.

Amal Development was established with Semikian as president, purportedly for the purpose of buying the second house, the prosecution said.

In May 2002, Semikian obtained $125,000 from Brisadal Real Estate purportedly to be used by Amal Development to buy the second property.

But the government after Amal Development had received the money from Brisadal Real Estate, Semikian wrote numerous checks from an Amal Development checking account at City Trust Bank payable to cash to himself and to other persons.

The wire transfer of $150,000 for Cupspring to the account of Namlas at the City Trust Bank was made on Jan. 3, 2002. The wire transfer of $100,000 from Cupsring to the account of Namlas at the City Trust Bank was done on March 11, 2002.

The wire transfer of $125,000 from Brisadal to the account of Amal at the same bank happened on May 7, 2002, according to court documents.