IPI license revocation hearing begins

The Commonwealth Casino Commission board started yesterday the hearing that will enable it to decide whether or not to revoke the exclusive casino license of Imperial Pacific International (CNMI) LLC. The hearing ended past 5pm and will continue today, Thursday, after the board’s regular monthly meeting.

The hearing was first held at the CCC’s conference room at the Springs Plaza Building in Gualo Rai in the morning, but was later moved to the Office of the Governor’s conference room on Capital Hill in the afternoon due to online video technical problems.

CCC board vice chair Rafael Demapan, who presided over the hearing, said the public comment will be held at a later date when deliberations begin.

Aside from Demapan, the other commissioners serving as jurors or judges are Ramon Dela Cruz, Mariano Taitano, and Martin T. Mendiola.

Present and were supposedly ready to speak during the public comments portion of the hearing in the morning were Reps. Marissa Renee Flores (Ind-Saipan), Edwin K. Propst (D-Saipan), Vincent Aldan (Ind-Saipan), and House vice speaker Rep. Joel Camacho (Ind-Saipan).

IPI counsel Michael Chen, who is in Los Angeles and appeared via online video, informed the board in the afternoon hearing that they are going to call as witness an executive of Japan-based Kyosei Bank Group.

IPI’s parent company, the Hong Kong-based Imperial Pacific International Holdings Limited, and Kyosei Bank Group entered into a memorandum of understanding in July 18, 2023, which states that Kyosei will be investing $300 million in IPI’s casino/resort project on Saipan.

After completing his examination of CEC executive director Andrew Yeom in relation to the first complaint against IPI, Chen moved to disqualify all commissioners from the case, citing pre-existing bias against IPI. The first complaint refers to IPI’s failure to comply with commission order 2020-03 that requires IPI to maintain a payroll in a bank in the CNMI or the United States.

Chen said he does not want to offend the commissioners but he has to make the motion on behalf of his client.

Assistant attorney general Keisha Blaise, who is counsel for Yeom, objected to the motion to disqualify, saying she does not believe the commissioners are biased.

“I do not believe where that bias would come from as the funds were just supposed to be created to ensure that IPI’s employees were paid. The commissioners would not receive a dime of that money. So I don’t know where this bias would come from,” she said.

Chen said it’s about the commissioners’ personal interest.

He said it’s only not about the complaint itself, but about violating the requirements of the CNMI’s Administrative Procedures Act, which requires the hearing officer to be impartial.

When Saipan Tribune left the hearing late afternoon yesterday, Blaise was questioning Yeom about his second complaint against IPI.

In her opening statements, Blaise said they are here to ensure that the integrity of the gaming industry is upheld and that those entrusted with operating within it do it with the highest standards of compliance and accountability. “Today, you will hear evidence of IPI’s violations of commission orders, regulations….These violations are not minor oversights, but significant breaches that reflect the unsuitability of IPI to continue the privilege of being a licensed casino operator,” Blaise said.

She said the commissioners will hear clear and convincing evidence that IPI has failed to meet the standards expected of a casino licensee.

She said the fact that IPI violated Commonwealth laws, violated CCC regulations, committed acts of omission, did not self-report the facts concerning the violation, and that IPI did not properly accept responsibility, and most importantly, its continuous violations, has caused significant harm to the Commonwealth.

“The allegations against IPI are not minor infractions. They strike at the very heart of the principles upon which the commission operates. The safety and well-being of patrons, the integrity of gaming operations, and the trust of the community are all at stake,” she said.

She said it’s imperative to recognize that Yeom’s actions are not driven by desire to punish but rather by commitment to upholding the law and safeguarding the public interest.

Blaise said revocation of a casino license is a serious measure, but it is necessary since the licensee has demonstrated a consistent pattern of disregard for the regulations and responsibilities that come with operating a casino.

In his opening statements, Chen said the record reflects that IPI, which started operation in the Commonwealth in 2015, has been a law-abiding corporate citizen.

Chen said IPI has unable to reopen since the COVID-19 pandemic, but made every effort possible to comply with the CCC orders.

He said he disagrees with Yeom’s and Blaise’s assessment that IPI acted maliciously or intentionally.