12 Feb 2018
- By Emmanuel T. Erediano – [email protected] – Variety News Staff
HONG Kong Entertainment (Overseas) Investment Ltd., doing business as Tinian Dynasty Hotel & Casino, informed the District Court for the NMI last week that its attorney, Daniel T. Guidotti, is no longer representing the company because it can no longer afford a lawyer.
In his letter to District Court for NMI Magistrate Judge Heather L. Kennedy, Tinian Dynasty Chairman Chan Chun Wai also said that their total outstanding liabilities have climbed to more than $250 million, excluding the $75 million fine imposed by the Financial Crimes Enforcement Network of the U.S. Department of the Treasury.
These liabilities are continuously increasing due to late payment penalties and interest, Wai added.
“We ran out of money and cannot pay…the departments of government, the staff, the suppliers, the shareholders or the attorney we used to hire. As we cannot pay our attorney, he [has] withdrawn…and we cannot find another one to represent us,” Wai told Magistrate Judge Kennedy in a Feb. 6 letter.
He added, “We want to state the fact that we have run out of money, but are not abusing our staff — look at the efforts we made to get everyone home. Plaintiffs’ attorney in this case is trying to take advantage of us because we have no money to hire la egal representative. It does not, however, render him right in the claims. I am willing to come forward to explain in person before the judge without an attorney,” the company chairman said.
Wai said since his company acquired HKE in 2013, they have invested over $40 million to cure all legal and financial difficulties of the previous owner.
He said these include the back wages of hotel employees and the taxes owed to the CNMI government.
He said the company tried hard to survive but after it paid $3 million in July 2015 to settle criminal case 13-0002, the casino operations came to a stop the following month.
In that criminal case, Tinian Dynasty was charged with conspiracy to cause a financial institution to fail to file a currency transaction report (Count 1), in violation of 18 U.S.C. § 371 and 31 U.S.C. § 5313(a); failure to file a currency transaction report (Counts 2-156), in violation of 31 U.S.C. §§ 5313(a), 5322(b), and 5324(a)(l); failure to file a suspicious-activity report (Count 157), in violation of 31 U.S.C. §§ 5313(a) and 5322(b); and failure to maintain an effective anti-money-laundering program (Count 158), in violation of 31 U.S.C. §§ 5318(h) and 5322(b).
The hotel ceased operations in March 2016 which meant “all business operations were stopped and no more income could be generated since then.”
Source: Marianas Variety : http://www.mvariety.com/cnmi/cnmi-news/local/102179-tinian-dynasty-owner-we-re-broke