The CNMI government is suing the owners of cargo ship M\/V Luta for allegedly refusing to return the $400,000 in public funds that was loaned to them for the vessel\u2019s operations. <\/p>\n
The government, through the Office of the Attorney General, is suing Luta Mermaid LLC and its managers\/shareholders Abelina T. Mendiola, Deron T. Mendiola, Fidel S. Mendiola III, and Fidel Mendiola Jr. for unjust enrichment, conversion, and other claims.<\/p>\n
Lt. Gov. Victor Hocog and Finance Secretary Larrisa Larson were not among those named defendants in the government\u2019s lawsuit. <\/p>\n
Former Department of Public Lands secretary John DelRosario had sued Hocog and Larson in their personal and official capacities for handing over $400,000 in government funds for the operation of M\/V Luta.<\/p>\n
Last December, Superior Court judge pro tempore Timothy H. Bellas dismissed the claims against Hocog, ruling that Hocog\u2019s conduct was covered by legislative immunity.<\/p>\n
In the government\u2019s lawsuit filed on Tuesday, assistant attorneys general Christopher M. Timmons and Martin de los Angeles asked the Superior Court to enter a judgment for $400,000 in favor of the CNMI government.<\/p>\n
The prosecutors asked the court to order an accounting of the funds the defendants received from the government and to stop the M\/V Luta owners from transferring or wasting any property or asset that can be traced to the government\u2019s money.<\/p>\n
The prosecutors also asked the court to stop the defendants from removing M\/V Luta from the CNMI.<\/p>\n
According to the government\u2019s complaint, the Rota Legislative Delegation adopted Rota Legislative Delegation Resolution 19-3 on March 20, 2015, to authorize the Finance secretary to \u201cpay for fuel, lubrication, and costs necessary for the maiden voyage of M\/V Luta from Louisiana to Rota and to provide for the personnel and operational costs of the Office of the Mayor of Rota.\u201d<\/p>\n
Hocog, who was Senate president at that time, participated in drafting and the adoption of that resolution.<\/p>\n
Resolution 19-3 expressed the will of the Rota delegation that the Finance secretary be authorized to loan $400,000 to the ship\u2019s owners, with the amount to be repaid within one year.<\/p>\n
On March 27, 2015, two days after being notified by the Rota Legislative Delegation that Resolution 19-3 had been adopted, Larson remitted $400,000 from the general fund to the defendants\u2019 bank account.<\/p>\n
Because of this transfer, the defendants allegedly received public funds without legal authorization. <\/p>\n
On Jan. 17, 2017, Larson asked the defendants to repay the $400,000.<\/p>\n
On Feb. 1, 2017, in a letter from the defendants to Larson, dated Jan. 31, 2017, they admitted to receiving the funds, the prosecutors said.<\/p>\n
The prosecutors said the defendants admit in the letter that the funds were deposited into their account on March 30, 2015, without any agreement about repayment.<\/p>\n
The defendants have not entered into any contract of any kind with any government agency for the repayment of the $400,000, they said.<\/p>\n
The prosecutors said the defendants have not agreed to use the public monies it received from the government for any public purpose and have made no payment to the government. <\/p>\n","protected":false},"excerpt":{"rendered":"
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