$98.7K from garment suit settlement donated to 19 charities

A total of $98,700 in leftover money from the class action against the garment industry has been donated to 19 charitable organizations.
After deducting these disbursements, the net amount remaining in the Garment Residual Charitable Fund is $14,940.21, according to former Superior Court associate judge Timothy H. Bellas, who is the GRCF administrator.

Bellas used to be the chairman of the Garment Oversight Board, which was set up pursuant to the $20-million settlement agreement in a class action against the garment industry.

The lawyer disclosed the donations in his report filed on Wednesday in the U.S. District Court for the NMI.

Last March, Bellas issued a statement that on March 18, 2014, nearly $100,000 in GRCF was donated to different charitable groups. The groups were not identified in the statement.

In his interim report to the court, Bellas said those who received $10,000 each were the American Red Cross-NMI Chapter, Karidat Social Services, Mariana Islands Nature Alliance, VFW Saipan Post 3457, and NMI Crime Stoppers Program.

The NMI Museum of History & Culture received $5,700. Those who got $5,000 each were Saipan Community School, Commonwealth Cancer Association, NMI Judicial Historical Society, Center for Living Independently, and Tan Siu Lin Foundation.

The Diabetes Prevention Foundation Inc., Pet Assistance and Welfare Services, and the NMI Coalition Against Domestic and Sexual Violence each received $3,000.

The NMI Humanities Council and Gineftao I ManMena (GIMM) were given $2,500 each, while Empty Vessel Ministry got $2,000. Northern Marianas Protection and Advocacy Systems Inc., and Church of the Nazarene received $1,000 each.

In a twist to this case, Bellas told Saipan Tribune yesterday that the Internal Revenue Service has asked for $4,000 in Social Security contributions from the money that was given away by GOB.

Bellas said he previously wrote to IRS, explaining that the GOB is not an employer. He said IRS then went back to him, telling him that GOB should pay double because of penalty.

“I brought it to the judge when the money came in,” Bellas said, adding that he wanted to pay the original amount just to get out of it and prevent spending more, but not the penalty.

Bellas said if they come up with an agreement to settle it with IRS for $4,000, it means there’s about $10,000 leftover to distribute some more.

Bellas said he has made several inquiries in an effort to resolve the residual tax matter with various branches/divisions of the IRS.

“None of those efforts have proved meaningful,” he said, adding that he has been unable to contact someone with sufficient legal background to be able to comprehend the unique circumstances of the GOB and its creation.

Bellas said he spoke with assistant U.S. attorney Mikel Schwab of the Office of the U.S. Attorney in Guam and that Schwab has agreed to inquire within IRS for a possible resolution of the matter. If this attempt to resolve the matter by negotiation and settlement proves unsuccessful, Bellas said he shall seek further guidance from the court.