MPLT enters $1M loan deal, sues after finding fraud

The Marianas Public Land Trust filed yesterday a lawsuit against a non-profit organization and its initial four officers for allegedly inducing MPLT to enter into a $1 million loan agreement apparently intended for educational purposes.

MPLT sued APLE 501, its initial president Loreto B. Hocog, vice-president Edward Maratita Sr., secretary Severina Atalig Ogo, and treasurer Henry Atalig, for fraud.

According to MPLT, the defendants represented that the proceeds from the loan were to be used to provide low interest loans to students of Northern Marianas descents who are residents of Rota or their parents for educational purposes.

These representations, MPLT said, caused the plaintiff to make an initial disbursement of $154,924.

But MPLT learned that over 50 percent of the amount disbursed was in turn distributed to Hocog, Maratita, Ogo and Atalig or members of their immediate families without proper loan documentation.

MPLT asked the Superior Court to issue a judgment declaring APLE 501 liable to pay the principal sum of $143,155.69 plus accrued interest in the amount of $5,642.52 plus zero penalty charges for a total of $148,798.2 with interest.

MPLT, through counsel Victorino DLG. Torres, requested the court to order that Ogo’s mortgaged interests in the real property be ordered sold.

The plaintiff demanded that Ogo and all persons or entities claiming through her, be foreclosed of all equity or interest she may have in the mortgaged property consisting of 25,000 square meters.

MPLT also sought for damages.

Torres stated in the complaint that MPLT entered into a loan agreement with APLE on Aug. 23, 2002 for $1 million to be drawn down on an installment basis.

Torres said Hocog, on behalf of APLE, executed a promissory note obligating APLE to repay the loan plus interest thereon at the rate of 5 percent per annum.

Of the entire $1 million loan, MPLT released only an initial disbursement to APLE in the amount of $154,924.

The note is secured by a guaranty mortgage executed by Ogo for her property.

Torres said APLE is in default in the payments of indebtedness owed to MPLT.

The lawyer said APLE has failed to make promised monthly payments and have failed to abide by the terms of the note, loan, and mortgage documents.

“In addition, despite repeated demands, APLE continues to fail to make the promised payment obligated under the note, loan and mortgage documents,” Torres said.

As of Nov. 15, 2005, Torres said, there is justly due and owing to MPLT by APLE the principal sum of $143,155.69 plus accrued interest in the amount of $5,642.52 plus $0 penalty charges for a total of $148,798.21 with interest.

Torres said Hocog, Maratita, Ogo and Atalig affirmatively made representations to MPLT that the proceeds of the APLE loan was to be used for educational purposes for students of Northern Marianas descent who are residents of Rota.

The four APLE officers, he said, represented to MPLT that all loans were properly documented with enforceable promissory notes, loan agreements, mortgages and adequate collateral.

As a direct and proximate result of such representations, Torres said, MPLT entered into the loan agreement with APLE and made a disbursement of $154,924 to APLE “all to MPLT’s detriment.”