The Office of the Attorney General has asserted that Lt. Gov. Victor B. Hocog did nothing wrong over the transfer of $400,000 in government funds to Luta Mermaid LLC, that owns the cargo ship M\/V Luta, as he was only involved as a then-Rota senator over the passage of a resolution, which is not an appropriations bill.<\/p>\n
OAG Civil Division chief Christopher M. Timmons, counsel for Hocog in his personal capacity, said that former Department of Public Lands Secretary John DelRosario\u2019s Government Ethics Code Act claims are predicated upon a misperception that Hocog authorized a loan to his relative.<\/p>\n
Timmons discussed Rota Local Delegation Resolution 19-3 in Hocog\u2019s objection and opposition to DelRosario\u2019s motion to disqualify the OAG as counsel for Hocog in his personal capacity.<\/p>\n
OAG Solicitor Division chief James M. Zarones, counsel for Hocog and Department of Finance Secretary Larrisa Larson, joined in Timmons\u2019 objection and opposition.<\/p>\n
Attorney Jennifer Dockter, counsel for DelRosario, asserted that although it was an impermissible appropriation, it was an attempted appropriation nonetheless.<\/p>\n
Dockter said that simply tacking another name to the action does not change the substance of the act. <\/p>\n
Dockter said the OAG has a quagmire of conflict in this case as they have three named clients: Hocog in his official capacity, Hocog in his personal capacity, and Larson in her official capacity.<\/p>\n
She said OAG also has a fourth client, although not specifically named in this matter: Commonwealth citizens.<\/p>\n
The Superior Court will hear today, Thursday, the motion to disqualify the OAG and the motion to dismiss DelRosario\u2019s lawsuit.<\/p>\n
Last May, DelRosario filed a taxpayer\u2019s lawsuit against Hocog and Larson over the alleged adoption of a Rota Legislative Delegation Resolution 19-3 without public notice that purportedly authorized payment of $400,000 to Luta Mermaid LLC, a private company owned by Hocog\u2019s relatives. <\/p>\n
DelRosario is suing Hocog and Larson for breach of fiduciary duties, and expenditure of public funds for an improper purpose. In addition, Hocog is being sued for violation of the Open Government Act.<\/p>\n
DelRosario wants the OAG disqualified from serving as counsel for Hocog and Larson.<\/p>\n
Timmons argued that there must be an appropriation to authorize an expenditure of public funds. Local appropriations bills must originate in the House of Representatives, Timmons said, and must specify the matter that may be the subject of laws enacted by the members of the respective senatorial district.<\/p>\n
The OAG Civil Division chief cited that the audio recording of the meeting in question makes it clear that the Rota local delegation understood that Resolution 19-3 was not an appropriation bill but a resolution.<\/p>\n
He said Rota local delegation Resolution 19-3 was not and is not an appropriations bill.<\/p>\n
\u201cResolutions are statements of policy or expressions of the will of the resolving body unless they relate solely to the body\u2019s internal procedures, \u201c said Timmons, citing the analysis of NMI Constitution.<\/p>\n
He said Rota delegation Resolution 19-3 has no legal effect and did not confer a benefit upon Hocog\u2019s relatives, or upon anyone else.<\/p>\n
\u201cThis certainly is not the proper basis for assertion of a violation of the Government Ethics Code Act,\u201d Timmons said.<\/p>\n
Timmons also pointed out that DelRosario does not allege that Hocog had anything to do with the actual release of the $400,000.<\/p>\n
He said contrary to DelRosario\u2019s assertion that OAG \u201chas admitted facts, which subject Mr. Hocog to liability,\u201d these admitted facts do not support a finding that Hocog conferred benefits upon his relatives.<\/p>\n
Accordingly, Timmons said, neither the Attorney General\u2019s alleged duty to enforce the Government Ethics Act Code Act nor the alleged admissions by another member of the OAG can be a basis for disqualification in this case.<\/p>\n
Timmons said Larson did not admit facts that establish Hocog\u2019s violation of the Government Ethics Act because Resolution 19-3 was not binding.<\/p>\n
Timmons said Larson\u2019s defense does not implicate a former client because the AG did not advise then-governor Eloy S. Inos on this matter.<\/p>\n
He said DelRosario makes it clear that he has no evidence that counsel for Hocog and Larson advised Inos with respect to the Luta Mermaid, LLC loan, or Rota Legislative delegation Resolution 19-3.<\/p>\n
Instead, Timmons said, DelRosario insinuates that counsel may have \u201clearned confidential information in its representation of the late governor that it now seeks to use against the Governor\u2019s Office in its defense of Secretary Larson.\u201d<\/p>\n
Timmons said counsel for Hocog did not advise the late governor, and upon information and belief, neither did counsel for Hocog and Larson in their official capacities.<\/p>\n
He said neither counsel possess or has access to any confidential information obtained from the late governor, let alone any confidential information related to the loan or disbursement in question.<\/p>\n
Accordingly, he said, the duty of loyalty to former clients cannot be the basis for disqualification in this matter.<\/p>\n
Timmons added that AG\u2019s duty to prosecute ethics violations does not cause a conflict because the primary remedy for a violation by a member of the Legislature is impeachment, not prosecution.<\/p>\n
In DelRosario\u2019s reply, Dockter said that due to the conflict of interest that arises from multiple representations of the various parties to the case, the AG should be disqualified from continuing to represent them all.<\/p>\n
\u201cIf necessary, outside counsel could be appointed either by the attorney general or by this court to ensure separate representation which comports with the Model Rules of Professional Conduct,\u201d Dockter said<\/p>\n
The lawyer said taxpayers such as DelRosario have been cheated out of $400,000 that, as repeated by the OAG, seemed to have been appropriated through a document that has no legal effect.<\/p>\n
Dockter asked who is then responsible if DelRosario is correct, and neither Hocog nor Larson is responsible for the unlawful release of $400,000 of public monies.<\/p>\n
\u201cAnd more importantly, why isn\u2019t the office charged with upholding the law and protecting taxpayers answering that question and bringing appropriate actions against the responsible parties?\u201d Dockter asked. <\/p>\n
Dockter noted in a motion to disqualify that Larson as part of her apparent defense in this matter states that she transferred funds to Lt. Gov. Hocog\u2019s family business \u201cpursuant to direct order\u201d of then-governor Inos.<\/p>\n","protected":false},"excerpt":{"rendered":"
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