Rota Finance resident director arrested

Rota resident director for Finance Office and acting Rota Municipality treasurer Vivian Ogo Hocog was arrested and taken to Saipan on Friday for allegedly embezzling between $15,000 and $20,000 from miscellaneous and municipal treasurer accounts from July 2015 to May 2016.

Hocog, 54, was served with an arrest warrant on 10 charges—two counts of theft, theft by unlawful taking or disposition, theft of service, theft by failure to make required disposition of funds received, forgery, misuse of credit cards and issuance of bad checks, deceptive business practices, identity theft, and misconduct in public office.

The CNMI Office of the Public Auditor conducted the investigation.

Among the allegations is that Hocog used Rota Municipal Treasurer checks to purchase cases of beer for her own benefit and to play poker. She also allegedly forged the signature of Lt. Gov. Victor Hocog’s son, Victor Val, on a business license application for VAL’s Enterprise.

At a hearing on Friday at 4:45pm, Superior Court Associate Judge Teresa Kim-Tenorio maintained the $50,000 cash bail, but allowed Hocog to post 10 percent or $5,000 cash plus some conditions.

Kim-Tenorio noted that the defendant holds a government position and that although the charges are not violent, the court will take into consideration the 10 charges that involve corruption or public office trust.

Kim-Tenorio set the preliminary hearing for Sept. 13 at 1:30pm and the arraignment for Sept. 26 at 9am.

Assistant attorney general Matthew Baisley, counsel for the government, requested a bail of $25,000 cash, but stated that the government has no objection for 10 percent or only $2,500 cash as long as the defendant surrenders her travel documents.

The judge, however, increased it to $50,000 cash, but allowed the defendant to post 10 percent or $5,000 cash.

Attorney Matthew Holley, counsel for Hocog, requested the release of the defendant and allow her to post the cash on Tuesday.

The judge denied such arrangement.

Holley said Hocog does not pose danger to the community and is not a flight risk.

OPA investigator Juan M. Santos stated in his report that the investigation began when an anonymous caller provided information last July 8 that Hocog abused and misused funds under the Rota Imprest Funds and the Rota Municipal Treasurer Account for her own personal gain and benefit.

Hocog allegedly would write Rota Municipal Treasurer checks to “cash” to co-worker’s name, family’s names, or her boyfriend’s name.

The government checks were allegedly used at Sunshine Variety Store, TJ Enterprise dba Safeway Store, Poker Arcade, Rota 3Kings Market Too/Harvest Store all located in Songsong, Rota, and at Ming Yang Store located on Saipan.

Several of the Rota Municipal Treasurer’s (RMT) checks allegedly used by Hocog were returned due to insufficient funds.

OPA investigator Santos said that on Dec. 27, 2015, Hocog used a RMT check to purchase seven cases of beer at Sunshine Store and sold them at a cockfight derby.

Hocog allegedly kept the sale proceeds for her own personal benefit.

On that same day, Hocog allegedly used RMT checks to play poker at Poker Arcade.

Investigator Santos said that an owner of two Rota stores confirmed that they received RMT check, but only to be returned by the bank due to insufficient funds.

The two stores’ accounting staff then contacted Hocog about the returned checks, but the defendant advised the accountant that the funds were not yet available.

Hocog allegedly advised the accountant to redeposit the returned checks at the bank.

The two stores’ owner also disclosed that the owner of TJ Enterpriss dba Safeway Market told her that she too had experienced about one or two transactions with Hocog involving the use of RMT checks that the bank returned for insufficient funds.

Santos said that last Aug. 8, the Joint Task Force composed of OPA, Department of Public Safety, and Attorney General’s Investigation Division initiated the investigation at the Rota Finance Office.

Santos said the owners of the stores provided information and copies of RMT checks.

Santos said a witness stated that he saw Hocog use RMT check to buy seven cases of beer and assorted drinks at Sunshine Store.

The witness also disclosed that he also witnessed Hocog use RMT checks on numerous occasions for her own benefit.

Another storeowner disclosed that when she encountered that Hocog used an RMT check that had insufficient funds, she brought the matter to Rota Mayor Efraim Atalig’s attention.

The storeowner stated that Atalig said he would look into the matter and asked her to redeposit the same check.

The storeowner said the check was re-deposited at a later date and was cleared by the bank.

Santos said during an interview last Aug. 13, Hocog admitted to using RMT checks for her own benefits because she was desperate for money.

Hocog explained that under the RMT account, there are two accounts—for the Rota Casino Gaming Commission and the Miscellaneous Account.

Hocog allegedly admitted that all the money she embezzled using RMT checks were to help finance her children’s needs and herself.

Santos said Hocog admitted taking $7,000 to $8,000 and that she informed Atalig last June about what she did.

Santos said according to Hocog, she later received a letter from the mayor placing her on administrative leave and she was then replaced by Sharon A. Manglona.

Santos said Hocog admitted to investigators of using other person’s name on the RMT checks and that others also benefitted from the transactions because she was giving them money in return for cashing the RMT checks at various stores on Rota and on Saipan.

Hocog allegedly admitted that whenever funds are short and payments are to be paid out of the RMT account, she would give reason to delay and stall payments until she received her paycheck to cover the shortfall of funds.

Hocog also allegedly admitted to using open accounts to obtain items or goods at stores for her personal use and benefit and charged them under Rota Finance’s or the mayor office’s account.

Hocog allegedly admitted that she ordered a Revenue and Taxation Office employee to process a business license in which she signed off for Val’s Enterprise under Victor Val B. Hocog’s name absent payment of a business license fee.

Hocog allegedly admitted to forging the signature of Victor Val Hocog on the business license application.

Investigator Santos said to date there has been no payments of this business license fee under the owner’s name.

Santos said Rota Finance Office under Hocog’s control also processed three payments totaling $3,000.

Two payments were processed in April 2016 for VAL’s Enterprise.

Santos said one payment was processed in May 2016 which was deposited at Bank of Saipan, Rota Branch and then withdrawal of these funds were made at Bank of Saipan, Saipan main branch.

Santos said these checks were processed under Rota Imprest Fund Account.

Santos said investigation and collected evidence revealed that from July 2015 to May 2016, Hocog embezzled between $15,000 and $20,000 from the Miscellaneous Account and the Rota Imprest Fund Account.