NMI govt seeks NY AGO advice on coin

The CNMI government is seeking advise from the New York Attorney General’s Office on issues relating to the alleged fraudulent sale of “Freedom Tower Silver Coins” that bear the CNMI emblem.

Gov. Juan N. Babauta said in an interview that he has instructed the CNMI AGO to contact the office of NY attorney general Elliot Spitzer “to ask the AG to give us advice as to how best handle the royalties collected” from the sale of the coins.

“I have decided to do that because this matter is in the hand of the AG’s Office and in court in New York. I believe that the best [way] to handle this is to refer it to that office. I would be willing to follow and respect whatever the [New York] AGO’s office would give us,” said Babauta.

The governor, who had signed a contract with Softsky, a Wyoming-based company that manufactures commemorative coins, earlier said that the government would give up royalties received from the sale of the coins in view of controversies arising from it.

The governor, at the same time, also took note that the CNMI was never involved in the actual manufacture of the coins.

“We have nothing to do with the design or the actual appearance of the coins. We don’t know anything about that,” he said, indicating that the CNMI was focused on getting royalties from commemorative coins.

Spitzer’s office, which earlier filed an $8 million lawsuit against the seller of the coins, National Collector’s Mint Inc., received a favorable court ruling last year, stopping the sale of the coins.

A New York state judge reportedly found that National Collector’s Mint Inc. engaged in civil fraud, false advertising and deceptive business practices when it marketed its “2004 Freedom Tower Silver Dollar” for $19.95 in television and print ads.

The National Collectors Mint Inc. reportedly marketed the “2004 ‘Freedom Tower’ Silver Dollar,” as a product of the CNMI. The company claimed that the coins were made of silver from Ground Zero, the site where the World Trade Center towers fell on Sept. 11, 2001.

Spitzer had said that contrary to the claim, the coins were made of inexpensive metal alloy plated with about one-ten-thousandth of an inch of silver.

The U.S. Mint, the only government entity in the United States authorized to coin money, also said the silver coins were not genuine. It also said the commonwealth, as a U.S. insular possession, does not have the authority to coin its own money.

Following the court injunction against NCM, Babauta in November moved to suspend the CNMI’s contract with Softsky.

CNMI attorney general Pam Brown said the administration is now moving toward terminating the agreement. “That’s the way to go,” said Brown.

Likewise, Brown said that the money received from Softsky would be disposed of properly, noting that it would be unacceptable to profit from the Sept. 11 tragedy.

During the suspension, Softsky is not authorized to develop, mint, or market any coins using the authorization of the CNMI.

Last October, the CNMI government received $110,000 in royalties from Softsky from the sale of the coins.

Softsky had also remitted a total of $50,000 in summer last year from the sale of Double Eagle coins.