Former owners of defunct nightclubs settle Labor case

The former owners of the defunct Stardust and Star Light nightclubs on Friday handed the checks for the 25 employees to settle and close the Labor case.

Attorney Robert Torres, counsel for David Atalig and Star Four Corp., gave the checks to the Department of Labor as final settlement of the case.

Eight of the 25 women came accompanied by Sister Stella Mangona to receive their checks. Sister Mangona will notify the 17 other women, who are no longer staying in the CNMI, about their checks.

The total amount of the settlement was confidential as part of the agreement. Superior Court Associate Judge David A. Wiseman, however, mentioned during Mr. Atalig’s sentencing last March that the businessman agreed upon a settlement with Labor “for a substantial sum of money in the six figures.”

When asked for comment about the settlement, Torres said the resolution of the labor case against couple David and Corazon Atalig and Star Four Corp. “closes a most difficult chapter for everyone in the matter.”

“As we said in the sentencing, the resolution comes about as a matter of accepting responsibility and ensuring resolution,” Torres told Saipan Tribune.

The lawyer said Mr. Atalig has appreciated the consideration of the employees and at the same time they (Ataligs) have appreciated their understanding of the case.

“We wish everyone the best in their future and we look forward to everyone moving… pass this chapter in our lives,” Torres added.

Labor, on behalf of the employees mostly dancers, filed the case against the Atalig couple and Star Four Corp. for wage and hour violations and unlawful confinement.

“With the help of the Labor Enforcement and the Labor legal counsel and the Hearing Administrative Office we were able to get everyone paid,” a Labor staff told Saipan Tribune shortly after the checks were awarded.

He said the Labor investigator, with the help of Labor enforcement officer in charge Jeffrey Camacho, came down with the computation on the unlawful confinement issue to determine the amount owed to the workers.

In April 2006, authorities arrested the Atalig couple for allegedly employing minor girls and forcing them to dance naked and other lewd things. Corazon’s two sisters were also arrested.

The Atalig couple signed a plea agreement with the government. Mr. Atalig pleaded “no contest” to one count of immigration fraud. Mrs. Atalig pleaded “no contest” to four counts of aiding, abetting, and encouraging illegal entry.

Mrs. Atalig’s sisters—Nilda Maniego and Priscilla D. Rulloda—pleaded “no contest” to one count of harboring of an illegal alien.

In March 2008, Wiseman ordered Mr. Atalig to spend two years and six months in prison.

In January 2008, Wiseman sentenced Mrs. Atalig to a total of 362 days in jail. In the same month, the judge suspended the imposition of sentence to Maniego and Rulloda and placed the two on probation for three years.