Gregory steps down as AG

Attorney General Matthew Gregory, whose tough anti-corruption efforts have at times made him a lighting rod for criticism in the CNMI, resigned from his post Sunday with plans to return to private practice as an attorney.

Appointed by Gov. Benigno R. Fitial two and a half years ago, Gregory defined his term as attorney general through major prosecutions involving white-collar crimes, several successful efforts to recover millions in federal tax money owed to the CNMI, and working to help the government meet local energy needs.

Under Gregory’s leadership, the Attorney General’s Office was deeply involved in the investigation that led to the recent federal indictment of Lt. Gov. Timothy Villagomez and three others over an alleged scheme to bilk the Commonwealth Utilities Corporation out of thousands through needless chemical purchases.

Gregory announced his resignation in a statement, saying it will take effect Sept. 27.

“The individuals from this office fearlessly fight to take back our Commonwealth at severe career risk,” he wrote, pointing to his office’s record of combating fraud and corruption. “We helped prove once and for all that no one is immune from prosecution, although it has resulted in vicious criticism by those who don’t support such efforts.”

As AG, Gregory said in the statement, his office has won major monetary awards on behalf of the Commonwealth through litigation with the Internal Revenue Service, cases that brought $33 million into the government’s coffers at a time when cuts had scaled back its budget by 20 percent.

At the height of Saipan’s electric power crisis, Gregory’s office also became a major proponent of alternative energy by working with the Fitial administration on the development of geothermal power and soon to be finalized regulations letting the private sector supply power to CUC through a process known as net metering.

Moreover, the AG’s investigators have seen significant strides fighting crimes like copper wire theft, marriage fraud, and corruption among government officials, Gregory noted, giving thanks to his staff and Fitial for their support.

After the release of his statement, Gregory said in an interview that his resignation comes after lengthy talks with the governor.

“I’ve actually stayed on a little longer to address a few things,” he said, noting continued litigation with the IRS and the pending release of net metering rules. “I am happy to have served the Commonwealth but I also think it’s time for me to move on with my life.”

Gregory acknowledged that the work he has done during his term as attorney general often sparked criticism but his staff has nevertheless put their careers on the line to fight corruption in the CNMI.

“A lot of the charges we have made are against some of the most powerful families in the CNMI, and so everybody gets worried about that,” he said. “But the thing I love about the office is that people are willing to take that risk. Few people in the community understand that but it really is a courage that they have that they’re often not thanked for.”

Looking ahead, Gregory said the federal takeover of local labor rules on the horizon and economic troubles pose major challenges for the CNMI but there is reason for optimism, such as increased tourism and the prospect Asiana Airlines may soon provide additional flight service to the Commonwealth.

“While federalization has the capacity to damage the economy of the Commonwealth, we have increasing tourism numbers and you’ll soon find out there is going to be a significant increase in flights,” he said. “I believe we may see 19 additional flights in the next few months. So it’s a couple steps forward and one step back. Federalization is a negative but there are positives developing in parallel.”

Fitial, he added, will likely appoint a new attorney general in the near future.